The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume that the...
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Hello,

I was just wondering about how the cost of labour and capital in the following question factor into

the answer itself. Thank you!Screen Shot 2019-10-14 at 7.32.11 PM.png

Screen Shot 2019-10-14 at 7.32.11 PM.png

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.
Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
Labour per period
Total output per period
0
0
10
30
90
132
150
TABLE 7-3
5) Refer to Table 7-3. The average total cost when producing 150 units of output is approximately
5)
A) 40 cents.
B) 67 cents.
C) $1.50.
D) 80 cents.
E) 33 cents.

Top Answer

So, the correct option is B "0.67... View the full answer

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