Suppose That for a Particular Firm the Only Variable Input

question 611

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 the average total cost when 5 units of output are produced is $30, and the marginal cost of the sixth unit of output is $60. What is the average total cost when six units are produced?

• A)$10
• B)$25
• C)$30
• D)$35

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Definitions:

Species Diversity

The variety of species within a habitat, ecosystem, or geographic area, encompassing both the number of different species (species richness) and their relative abundance.

Clearing Forest

The process of removing trees and vegetation from wooded areas, often for agricultural or urban development purposes.

Hunting

The practice of pursuing and capturing or killing wild animals for food, sport, or other purposes.

Biodiversity

The variety and variability of life on Earth, encompassing the diversity of species, genes, ecosystems, and ecological processes.