Refer to the Following

question 48

Multiple Choice

Refer to the following:
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.

-When the firm uses 40 units of labor, what is average total cost at this output?

• A) $140
• B) $40
• C) $70
• D) $170
• E) none of the above