Refer to the Following

question 15

Multiple Choice

Refer to the following:
The price of capital is $100 per unit; the price of labor is $25 per unit.
-When output is 20 units, what is AVERAGE cost?

• A) $350
• B) $700
• C) $3,500
• D) $7,000
• E) none of the above

---

Definitions:

Relative Prices

The price of one good or service compared to another, usually indicating how many units of one good you can exchange for a unit of another.

Quinces

A yellow fruit that is similar to a pear in shape and is often used in cooking or making preserves due to its tart flavor.

Kumquats

Small, edible fruit resembling oranges with a sweet rind and tart flesh, often eaten whole or used in culinary dishes.

Bushel

A unit of volume that is used for measuring quantities of agricultural produce, such as grains.