The Following Graph Shows the Marginal and Average Product Curves

question 8

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 120 units of labor,what is average total cost at this output?

• A)$59
• B)$40
• C)$190
• D)$84
• E)$120

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