Assume Fixed Costs Are 470 and Labor Costs $20 Per

question 25

Multiple Choice

Assume fixed costs are 470 and labor costs $20 per unit. The first laborer produces 20 units of output. Subsequent hires add 5 units less to production than the previous worker. Thus the second worker adds 15, the third adds 10 etc. Which of the following is a true statement?

• A)At an output of 20 the total cost is $20.
• B)Average total cost at an output of 50 is 11.
• C)Average fixed cost is 10 when output is 45.
• D)Marginal cost keeps falling as the number of laborers hired increases.

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Definitions:

Carbon

A chemical element with symbol C and atomic number 6, essential to all known life and the basis for organic chemistry.

Hydrogens

A chemical element with the symbol H and atomic number 1, known as the lightest element in the periodic table.

Beta-pleated Sheet

A beta-pleated sheet is a common protein secondary structure formed by parallel or antiparallel beta-strands linked together by hydrogen bonding.

Carbohydrate

Organic compounds, such as sugars, starches, and cellulose, consisting of carbon, hydrogen, and oxygen, that are an essential source of energy for living organisms.