A Firm Produces 4,000 Units of Output Using 500 Workers

question 79

Multiple Choice

A firm produces 4,000 units of output using 500 workers.Marginal cost is $10,the wage rate is $160,and total fixed cost is $100,000.What is average variable cost?

• A)$0.32
• B)$16
• C)$20
• D)$1,280
• E)none of the above