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 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

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

Refer to the Following