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 marginal cost at this level of output?
A) $70
B) $35
C) $60
D) $280
E) $55

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 marginal cost at this level of output?
A) $70 
B) $35 
C) $60 
D) $280 
E) $55

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 marginal cost at this level of output?
A) $70 
B) $35 
C) $60 
D) $280 
E) $55

Refer to the Following