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The Following Data Show the Total Output for a Firm

Question 104

Multiple Choice

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.  Labour per unit of time  Total output 00125275317542505305\begin{array} { | c | c | } \hline \text { Labour per unit of time } & \text { Total output } \\\hline 0 & 0 \\\hline 1 & 25 \\\hline 2 & 75 \\\hline 3 & 175 \\\hline 4 & 250 \\\hline 5 & 305 \\\hline\end{array} TABLE 7- 4
-Refer to Table 7- 4.The average total cost for 250 units of output is approximately


A) 33 cents.
B) $1.00.
C) 80 cents.
D) 40 cents.
E) 63 cents.

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