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In the Table Below,the Capital Stock Is Fixed at 40

Question 38

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In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit.  Units of  Units of  Labor  Output 540101001518020220\begin{array} { c c } \text { Units of } & \text { Units of } \\\text { Labor } & \text { Output } \\\hline 5 & 40 \\10 & 100 \\15 & 180 \\20 & 220\end{array} If the firm produces 40 units of output,what is average fixed cost?


A) $7.50
B) $25
C) $120
D) $600
E) none of the above

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