Suppose That for a Particular Firm the Only Variable Input

question 200

Multiple Choice

Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when four units of output are produced, the total cost is $175, and the average variable cost is $33.75. What would the average fixed cost be if ten units were produced?

• A)$4
• B)$10
• C)$40
• D)$135

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