The Following Data Show the Total Output for a Firm

question 1

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 90 units of output is approximately

• A)27 cents.
• B)30 cents.
• C)33 cents.
• D)89 cents.
• E)$26.67.

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