Refer to the Following:
the Capital Stock Is Fixed at 50

Multiple Choice

Refer to the following:
The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit.

$$\begin{array} { c c } &\text { Average } \\\text { Output } & \text { Variable Cost }\\\hline 10 & \$ 40 \\20 & 30 \\30 & 45 \\40 & 60 \\\hline\end{array}$$
-If the firm produces 20 units of output, what is average fixed cost?

A) $1.50
B) $50
C) $150
D) $600
E) none of the above