The Following Graph Shows the Marginal and Average Product Curves

question 65

Multiple Choice

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 AVC at this level of output?

• A)$120
• B)$400
• C)$40
• D)$70
• E)$86

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Definitions:

Social Responsibility Values

Ethical principles that emphasize the importance of acting in ways that benefit society at large.

Parenting Style

Sets of child-rearing behaviors a parent uses across situations to form a child-rearing climate.

Moral Reasoning

The process of determining right and wrong in situations, informed by personal, cultural, or societal values.

Low Levels

Referring to a quantity or intensity that is less than average or beneath the typical range.