Refer to the Following

question 24

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 AVC at this level of output?

• A) $120
• B) $400
• C) $40
• D) $70
• E) $86

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Definitions:

Economic Forces

Factors such as inflation, exchange rates, economic growth, and governmental policy that affect the business environment and economic performance.

Domino's

A multinational pizza restaurant chain known for its wide variety of pizza options and fast delivery services.

Marketing Department

A division within a company that focuses on creating and implementing strategies to promote and sell products or services.

Environmental Forces

External factors like climate, ecological changes, and natural resources that affect an organization's operations and decision-making.