Refer to the Following:
the Capital Stock Is Fixed at 5

Multiple Choice

Refer to the following:
The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit.

$$\begin{array} { c c } \text { units of } & \text { units of } \\\text { Labor } & \text { Output } \\\hline 2 & 10 \\4 & 26 \\0 & 46 \\8 & 60 \\10 & 72 \\12 & 80\end{array}$$
-If the firm produces 60 units of output, what is average variable cost?

A) $5
B) $7.67
C) $20
D) $57.50
E) $2.67