The Following Graph Shows the Marginal and Average Product Curves

question 103

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 its AVC at this output?

• A)$40
• B)$70
• C)$60
• D)$56
• E)none of the above

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Definitions:

Deposit In Transit

Funds that have been sent to a bank but have not yet been processed and added to the account balance.

Note Collected

The action of receiving payment or settling a promissory note, where one party pays the amount owed to another.

Bank Service Charges

Fees charged by a bank for the handling of accounts, provision of services, or the execution of transactions.

Journal Entries

The basic method of recording financial transactions in the accounts of a business using a double-entry bookkeeping system.