The Capital Stock Is Fixed at 5 Units,the Price of Capital

question 63

Multiple Choice

The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit. $$\begin{array} { c c } \text { Units of } & \text { Units of } \\\text { Labor } & \text { Output } \\\hline 2 & 10 \\4 & 26 \\6 & 46 \\8 & 60 \\10 & 72 \\12 & 80\end{array}$$ Based on the above,if the firm produces 60 units of output,what is average variable cost?

• A)$5
• B)$7.67
• C)$20
• D)$57.50
• E)$2.67

---

Definitions:

Cardiac Muscle

A specialized type of muscle found only in the heart, characterized by its endurance and ability to contract continuously without fatigue.

Skeletal Muscle

Skeletal muscle is a type of muscle tissue that is attached to bones and helps in voluntary movements by contracting and relaxing.

Locomotion

The ability of an organism to move from one place to another using various mechanisms such as walking, swimming, or flying.

Involuntary Control

The automatic regulation of bodily functions and processes that do not require conscious control, such as breathing and digestion.