Assume That One Laborer Produces 6 Units of Output,two Laborers

question 90

Multiple Choice

Assume that one laborer produces 6 units of output,two laborers produce 14 units,three produce 20 units,and four produce 24 units.If the cost is $20 per unit of labor and fixed costs are $100,what is the average total cost at 14 units of output?

• A)$50
• B)$20
• C)$10
• D)$100
• E)$40

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Definitions:

Domestic Output

The sum of the worth of all products and services generated inside the confines of a nation over a specific duration.

Industrially Advanced Countries

Nations characterized by high levels of industrialization, technological advancement, and economic productivity.

Transfer Payments

are non-exchange transactions where one party (usually the government) provides economic benefits to another without receiving a good or service in return.

Domestic Output

Refers to the total value of all goods and services produced within a country's borders in a given time period, usually measured as GDP.