The Following Data Show the Total Output for a Firm

question 139

Multiple Choice

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
TABLE 7-3
-Refer to Table 7-3.If this firm is producing 20 units of output per period its marginal cost is

• A)$1.00.
• B)50 cents.
• C)$1.67.
• D)16.7 cents.
• E)$10.00.

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Definitions:

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