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

question 50

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,how much does the 12th unit of output add to the firm's total variable cost?

• A)$2.50
• B)$4
• C)$5
• D)$20
• E)$40

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