The Following Data Show the Total Output for a Firm

question 66

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.At what level of output does average total cost reach a minimum?

• A)30
• B)90
• C)132
• D)150
• E)ATC declines continuously over the range of output shown.

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Definitions:

Center Line

A line that divides something into equal or symmetrical parts, often used in graphs or design to indicate a central point or axis.

Standard Deviation

It measures the amount of variation or dispersion of a set of values in statistics, indicating how much the individual data points differ from the mean of the data set.

Forging Process

The forging process is a metalworking technique involving the shaping of metal using localized compressive forces, such as hammering or pressing.

S Chart

A type of control chart used to monitor the variability within a sample, especially for processes that involve subgroups.