The Following Data Show the Total Output for a Firm

question 104

Multiple Choice

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. $$\begin{array} { | c | c | } \hline \text { Labour per unit of time } & \text { Total output } \\\hline 0 & 0 \\\hline 1 & 25 \\\hline 2 & 75 \\\hline 3 & 175 \\\hline 4 & 250 \\\hline 5 & 305 \\\hline\end{array}$$ TABLE 7- 4
-Refer to Table 7- 4.The average total cost for 250 units of output is approximately

• A)33 cents.
• B)$1.00.
• C)80 cents.
• D)40 cents.
• E)63 cents.

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Definitions:

Long-term Debt

Loans or financial obligations that are due for repayment beyond the next 12 months or the current business cycle.

FICA Taxes

Taxes designed to provide workers with supplemental retirement, employment disability, and medical benefits.

Employee Earnings

The total amount of money paid to an employee by an employer, including wages, salaries, bonuses, and commissions.

Compensation

Payment or benefits provided to employees in exchange for their work or services.