The Capital Stock Is Fixed at 50 Units,the Price of Capital

question 94

Multiple Choice

The capital stock is fixed at 50 units,the price of capital is $30 per unit,and the price of labor is $25 per unit. Given the above,if the firm produces 20 units of output,what is average fixed cost?

• A)$1.50
• B)$50
• C)$150
• D)$600
• E)none of the above

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