-Assume Labor-The Only Variable Input of a Firm-Has Average and Marginal

question 76

Multiple Choice

-Assume labor-the only variable input of a firm-has average and marginal product curves shown in the figure above.The price of labor is $1,000 per unit .The average variable cost when 550 units of labor are employed is $_________,and the marginal cost when 550 units of labor are employed is $____________.

• A)$1,000/1,925; $1,000/825
• B)$1,000/2,700; $1,000/2,025
• C)$4.50; $2.75
• D)$0.35; $2.70
• E)none of the above