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.

---

Definitions:

Confidence Interval

A range of values, derived from the statistics of observed data, that is likely to contain the value of an unknown population parameter.

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the number of values.

Population Standard Error

A measure of the dispersion of sample means around the population mean.

Confidence Interval

Values range, derived from the examination of a sample, expected to enfold the value of a concealed population parameter.