The Data in the Table Is for a Firm in Which

question 9

Multiple Choice

The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought.

-Refer to the information above to answer this question.As one reads down the AVC column,what is the pattern in the numbers?

• A)They continuously rise.
• B)They continuously fall.
• C)They fall until the fifth unit of labour used and then remain unchanged.
• D)They rise until the fifth unit of labour used and then remain unchanged.
• E)They fall until the fifth unit of labour used and then rise with the seventh unit of labour used.