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:

Severe Mental Illness

Mental disorders that significantly impact day-to-day functioning, including major depression, schizophrenia, and bipolar disorder.

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Issues arising from the abuse of or addiction to substances, causing significant impairment or distress.

Psychiatrist

A medical doctor specialized in the diagnosis, treatment, and prevention of mental illnesses, including various affective, behavioral, cognitive, and perceptual disorders.

Schizophrenia

A chronic psychological condition characterized by a disconnection among cognition, affect, and conduct, resulting in distorted perceptions and improper actions and emotions.