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The Capital Stock Is Fixed at 50 Units,the Price of Capital

Question 25

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The capital stock is fixed at 50 units,the price of capital is $30 per unit,and the price of labor is $25 per unit.  Output  Average Variable Cost 10$40203030454060\begin{array} { c c } \text { Output } & \begin{array} { c } \text { Average} \\\text { Variable Cost }\end{array} \\\hline 10 & \$ 40 \\20 & 30 \\30 & 45 \\40 & 60\end{array} Given the above,if the firm produces 20 units of output,what is average fixed cost?


A) $1.50
B) $50
C) $150
D) $600
E) none of the above

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