A Factory Producing Calculators Employs Four Workers

Multiple Choice

A factory producing calculators employs four workers. At current levels of operation each worker produces 40 calculators per week. Assuming labor is the only variable input and the weekly wage is $400 per worker:

A) average variable cost is $10.
B) variable cost is $10.
C) average variable cost is $40.
D) average fixed cost is $10.