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 average total cost at this output?
A) $140
B) $40
C) $70
D) $170
E) none of the above

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.
 
-When the firm uses 40 units of labor, what is average total cost at this output?
A) $140 
B) $40 
C) $70 
D) $170 
E) none of the above

Quizplus · Accepted Answer

The Answer of 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 average total cost at this output?
A) $140 
B) $40 
C) $70 
D) $170 
E) none of the above

Refer to the Following