The Following Graph Shows the Marginal and Average Product Curves

question 16

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 40 units of labor,what is AVC at this level of output?

• A)$120
• B)$400
• C)$40
• D)$70
• E)$86

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Definitions:

Buying Center Cultures

involves the dynamics and behaviors within a group of individuals in an organization who participate in the purchasing decision process, each with distinct roles and influences.

B2B

Business-to-business, a transaction or business conducted between one business and another, such as wholesaler to retailer or manufacturer to distributor.

B2C

Business-to-Consumer, a business model focused on selling products and services directly to the individual customer.

Buying Processes

The series of steps consumers follow from recognizing a need, evaluating options, making a purchase decision, to post-purchase evaluation.