The Following Graph Shows the Marginal and Average Product Curves

question 9

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 average total cost at this output?

• A)$140
• B)$40
• C)$70
• D)$170
• E)none of the above

---

Definitions:

Hot Dogs

A cooked sausage, traditionally grilled or steamed, served in a sliced bun as a common American street food.

Oil Imports

The purchase of foreign oil by a country to meet its energy needs not covered by domestic production.

Dumping

The practice of selling a product in a foreign market at a price below its cost of production or below the price in the home market, often to gain market share or dispose of surplus.

International Market

A broad term encompassing all commercial transactions that occur between countries, including trade, investment, and currency exchange.