Refer to the Following

question 89

Multiple Choice

Refer to the following:


Above is a firm's average product of labor and marginal product of labor curves. The price of labor is $60 per unit.
-When the firm uses 4 units of labor, what is AVERAGE variable cost?

• A) $10
• B) $24
• C) $124
• D) $240
• E) none of the above

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Definitions:

Satisfaction

The fulfillment of one's wishes, expectations, or needs, or the pleasure derived from this fulfillment.

Consumer

A person or collective who buys products or services for their own consumption.

Diminishing Marginal Utility

The principle that as a person consumes more of a product, there is a decline in the additional satisfaction or utility that person derives from consuming one more unit of the product.

Total Utility

The total satisfaction received by a consumer from consuming a particular quantity of goods or services.