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

Question 8

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.

 Average  Output  Variable Cost 10$40203030454060\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 30 units of output, how many units of labor does the firm use?


A) 30
B) 45
C) 54
D) 60
E) none of the above

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