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Suppose That the Firm's Only Variable Input Is Labor

question 7

Multiple Choice

Suppose that the firm's only variable input is labor.When 50 workers are used,the average product of labor is 50 and the marginal product of labor is 75.The wage rate is $80 and the total cost of the fixed input is $500.What is average variable cost?


Definitions:

Mandibular Fossa

A depression in the temporal bone that forms the socket for the condylar process of the mandible, contributing to the temporomandibular joint.

Temporal

Related to time or also pertaining to the temples of the head near the temporal bones of the skull.

Sphenoid

A butterfly-shaped bone at the base of the skull, behind the eyes, touching on various important structures and enclosing the pituitary gland.

Maxilla

the upper jawbone in vertebrates, which is key to the formation of the palate, nose, and eye orbits.

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