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 120 units of labor,what is its AVC at this output?
A)$40
B)$70
C)$60
D)$56
E)none of the above

Question

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 120 units of labor,what is its AVC at this output?
A)$40 
B)$70 
C)$60 
D)$56 
E)none of the above

Quizplus · Accepted Answer

The Answer of 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 120 units of labor,what is its AVC at this output?
A)$40 
B)$70 
C)$60 
D)$56 
E)none of the above

The Following Graph Shows the Marginal and Average Product Curves