The Following Data Show the Total Output for a Firm

question 33

Multiple Choice

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
TABLE 7-3
-Refer to Table 7-3.The average total cost when producing 150 units of output is approximately

• A)33 cents.
• B)40 cents.
• C)67 cents.
• D)80 cents.
• E)$1.50.

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Definitions:

Average Fixed Costs

Production expenses that stay the same, independent of output levels, divided by the number of units produced.

Drones

Unmanned aerial vehicles (UAVs) that are either operated by remote control or autonomously by computers.

Total Variable

The total of all variable costs associateed with the production of goods or services.

Total Fixed

All expenses that are unchanged irrespective of the volume of production or output combined.