The Following Data Show the Total Output for a Firm

question 140

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.
TABLE 7-4
-Refer to Table 7-4.Average variable costs for 175 units of output is approximately

• A)25 cents.
• B)32 cents.
• C)43 cents.
• D)57 cents.
• E)$1.00.

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Definitions:

Productive

Refers to the efficiency and capability of producing goods and services, often measured by output per unit of input.

MRP Schedule

Refers to the schedule showing the relationship between the marginal revenue product (MRP) of labor or another input and the amount of the input employed, underpinning decisions in factor markets.

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.

Derived Demand

Demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.