The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7- 3
-Refer to Table 7- 3.The average total cost when producing 150 units of output is approximately
A) 33 cents.
B) 40 cents.
C) $1.50.
D) 80 cents.
E) 67 cents.
Correct Answer:
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