The Only Variable Input Used in Producing Bicycles in a Small

Multiple Choice

The only variable input used in producing bicycles in a small factory is labor. Currently four workers are employed; each works 40 hours per week and is paid $10 per hour. If fixed cost is $2,000 per week and total output is 10 bicycles per week, average cost is:

A) $160.
B) $260.
C) $200.
D) $360.