The Capital Stock Is Fixed at 5 Units,the Price of Capital

question 44

Multiple Choice

The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit. Based on the above,if the firm produces 60 units of output,what is average variable cost?

• A)$5
• B)$7.67
• C)$20
• D)$57.50
• E)$2.67

---

Definitions:

Capital

Assets used for the production of goods and services, such as machinery, buildings, and equipment.

Association Is Causation

The incorrect assumption that a relationship between two variables implies that one causes the other; a logical fallacy often encountered in statistical analysis.

Apple Computers Stock

Financial shares representing ownership in Apple Inc., an American multinational technology company known for products like the iPhone and Mac computers.

Economist

A professional practitioner or scholar who studies the production, distribution, and consumption of goods and services.