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Number of Workers Number of Units of Capital Total Product (Quantity) 0 5 0 1 5 1 2 5 5 3 7 4 5 10 12 5 5 Suppose labor and capital can be hired in a competitive market. The wage is $15 per worker and the rental rate of capital is $10 per unit. Based on the table, what are the average variable cost (AVC) and average total cost (ATC) of producing 10 units of output? A AVC is $5 and ATC is $12 B AVC is $6 and ATC is $11 © AVC is $15 and ATC is $25 D AVC is $60 and ATC is $110 E AVC is $105 and ATC is $175

Number of Workers Number of Units of Capital Total Product (Quantity) 0 5 0 1 5 1 2 5 5 3 7 4 5 10 12 5 5 Suppose labor and capital can be hired in a competitive market. The wage is $15 per worker and the rental rate of capital is $10 per unit. Based on the table, what are the average variable cost (AVC) and average total cost (ATC) of producing 10 units of output? A AVC is $5 and ATC is $12 B AVC is $6 and ATC is $11 © AVC is $15 and ATC is $25 D AVC is $60 and ATC is $110 E AVC is $105 and ATC is $175

ECON MICRO
ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.9P
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Q18 Short-Run Production Costs in PC Number of Workers Number of Units of Capital Total Product (Quantity) 0 5 0 1 5 1 2 5 3 3 5 7 4 5 5 5 10 12 Suppose labor and capital can be hired in a competitive market. The wage is $15 per worker and the rental rate of capital is $10 per unit. Based on the table, what are the average variable cost (AVC) and average total cost (ATC) of producing 10 units of output? AVC is $5 and ATC is $12 B AVC is $6 and ATC is $11 E E AVC is $15 and ATC is $25 AVC is $60 and ATC is $110 AVC is $105 and ATC is $175 02:37
Transcribed Image Text:Q18 Short-Run Production Costs in PC Number of Workers Number of Units of Capital Total Product (Quantity) 0 5 0 1 5 1 2 5 3 3 5 7 4 5 5 5 10 12 Suppose labor and capital can be hired in a competitive market. The wage is $15 per worker and the rental rate of capital is $10 per unit. Based on the table, what are the average variable cost (AVC) and average total cost (ATC) of producing 10 units of output? AVC is $5 and ATC is $12 B AVC is $6 and ATC is $11 E E AVC is $15 and ATC is $25 AVC is $60 and ATC is $110 AVC is $105 and ATC is $175 02:37
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