-Refer to the Following Table

question 76

Multiple Choice

$\begin{array}{lllllll}&\text { Total Fixed } & \text { Total Variable } & & \text { Average } & \text { Average Variable} & \text { Average }&\text { Marginal } \\\text { Output }&\text { Cost } & \text { Cost } & \text { Total Cost } & \text { Fixed Cost } & \text { Cost } & \text { Total Cost } & \text { Cost }\\1&-&-&-&-&-&-&-\\2&-&-&\$600&-&-&-&-\\3&-&-&-&-&???&-&\$20\\4&-&\$440&-&-&-&-&-\\5&\$500&-&-&-&-&-&-\end{array}$
-Refer to the following table. What is the average variable cost of producing three (3) units of the good?

• A) $80
• B) $120
• C) $40
• D) $20
• E) $420

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Definitions:

Marginal Product

The additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.

Capital/Labor Ratio

The capital/labor ratio is a measure used in economics to indicate the amount of capital relative to the quantity of labor used in the production process.

Labor Productivity

The measure of the economic output produced per unit of labor input.

U.S.

A country consisting of 50 states, a federal district, and various territories, known formally as the United States of America.