The Following Graph Shows the Marginal and Average Product Curves

question 75

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 marginal cost at this level of output?

• A)$70
• B)$35
• C)$60
• D)$280
• E)$55

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Definitions:

Federal Budget

The government's estimate of revenue and spending for a fiscal year.

Urban Welfare Payments

Financial support provided by government programs to individuals and families in urban areas, aimed at helping them meet basic needs.

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A financial situation where an entity's expenditures exceed its revenues over a specified period, prompting borrowing or use of saved reserves.

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A type of legislation that allows government agencies to continue operating at current funding levels until new budget legislation is passed.