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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Definitions:

Egocentric

The inability to differentiate between one's own perspective and someone else's perspective, common in early childhood development.

Intuitive

Ability to understand or know something immediately based on instinct rather than conscious reasoning.

Conservation

The cognitive ability to understand that certain properties of objects, such as volume or mass, remain the same even when their outward appearance changes.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, which develops in infancy.