The Following Graph Shows the Marginal and Average Product Curves

question 100

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. At what output does the firm reach minimum average variable cost?

• A)7,400
• B)8,000
• C)100
• D)6,000
• E)600

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