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

Question 97

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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 30 units of output,how many units of labor does the firm use?


A) 30
B) 45
C) 54
D) 60
E) none of the above

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