The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. $$\begin{array} { | l | c | }
\hline \text { Labour per unit of time } & \text { Total output } \
\hline 0 & 0 \
\hline 1 & 25 \
\hline 2 & 75 \
\hline 3 & 175 \
\hline 4 & 250 \
\hline 5 & 305 \
\hline
\end{array}$$ TABLE 7- 4
-Refer to Table 7- 4.The total cost of producing 175 units of output is
A)$100.
B)$75.
C)$175.
D)$350.
E)$150.

Question

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. $$\begin{array} { | l | c | } 
\hline \text { Labour per unit of time } & \text { Total output } \
\hline 0 & 0 \
\hline 1 & 25 \
\hline 2 & 75 \
\hline 3 & 175 \
\hline 4 & 250 \
\hline 5 & 305 \
\hline
\end{array}$$ TABLE 7- 4
-Refer to Table 7- 4.The total cost of producing 175 units of output is
A)$100.
B)$75.
C)$175.
D)$350.
E)$150.

Quizplus · Accepted Answer

The total cost of producing 175 units of output is $175. This is because the wage per unit of labour is $25 and the cost of the capital is $100. Therefore, the total cost of producing 175 units of output is 3 * $25 + $100 = $175.

The Following Data Show the Total Output for a Firm