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Refer to the Following

Question 24

Multiple Choice

Refer to the following:
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
Refer to the following: The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000. -When the firm uses 40 units of labor, what is AVC at this level of output? A) $120 B) $400 C) $40 D) $70 E) $86
-When the firm uses 40 units of labor, what is AVC at this level of output?


A) $120
B) $400
C) $40
D) $70
E) $86

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