The Following Graph Shows the Marginal and Average Product Curves

question 49

Multiple Choice

The following graph shows the marginal and average product curves for labor,the firm's only variable input.The monthly wage for labor is $2,800.Fixed cost is $160,000. When the firm uses 120 units of labor,what is average total cost at this output?

• A)$59
• B)$40
• C)$190
• D)$84
• E)$120

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Definitions:

Sagittal

Refers to a plane or section that divides the body into right and left portions.

Transverse

Relating to or extending across something at a right angle.

Coronal

refers to a direction in anatomy denoting a plane that divides the body into frontal (anterior) and back (posterior) parts.

Horizontal

Relating to or situated at a right angle to the vertical; parallel to the ground or to the horizon.