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.

-What is AVC at its minimum?
A) $80
B) $100
C) $8
D) $50
E) $35

Question

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.
 
-What is AVC at its minimum?
A) $80 
B) $100 
C) $8 
D) $50 
E) $35

Quizplus · Accepted Answer

AVC (Average Variable Cost) is at its minimum when it is at its lowest point on the AVC curve. In this context, $35 is the lowest value among the given options.

Refer to the Following