Suppose a Firm Is Hiring 20 Workers at a Wage

question 94

Multiple Choice

Suppose a firm is hiring 20 workers at a wage rate of $60.The average product of labor is 30,the last worker added 12 units of output,and total fixed cost is $3,600.What is average total cost?

• A)$2
• B)$8
• C)$600
• D)$1800
• E)none of the above

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender may seize if the borrower fails to repay the agreed amounts.

Acquisition

The process of obtaining control of another company or business entity through purchase or merger.

Poison Pills

Strategies employed by companies to deter hostile takeovers, making the company less attractive to potential acquirers.

Takeover Attempt

An effort by one company to acquire control over another company, often by purchasing a significant portion of its stock.