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The Following Data Show the Total Output for a Firm

Question 65

Multiple Choice

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 0011023039041325150\begin{array} { | c | c | } \hline \text { Labour per period } & \text { Total output per period } \\\hline 0 & 0 \\\hline 1 & 10 \\\hline 2 & 30 \\\hline 3 & 90 \\\hline 4 & 132 \\\hline 5 & 150 \\\hline\end{array} TABLE 7- 3
-Refer to Table 7- 3.The average total cost when producing 150 units of output is approximately


A) 33 cents.
B) 40 cents.
C) $1.50.
D) 80 cents.
E) 67 cents.

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