In the Table Below,the Capital Stock Is Fixed at 40

question 38

Multiple Choice

In the table below,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. $$\begin{array} { c c } \text { Units of } & \text { Units of } \\\text { Labor } & \text { Output } \\\hline 5 & 40 \\10 & 100 \\15 & 180 \\20 & 220\end{array}$$ 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

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