Refer to the following:
The capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit.
-If the firm produces 40 units of output, what is average fixed cost?
A) $7.50
B) $25
C) $120
D) $600
E) none of the above
Correct Answer:
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Suppose that the firm's
The capital stock
A firm produces 4,000
The capital stock
The capital stock
Suppose a firm is