Question
The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same
The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought.
Units of Labour | TP | MP | AP | TVC $ | MC $ | AVC $ |
0 | 0 | / | / | 0 | / | / |
1 | 8 | 8 | 100 | |||
2 | 20 | |||||
3 | 45 | 25 | ||||
4 | 30 | 18.8 | ||||
5 | 20 | |||||
6 | 120 | 20 | ||||
7 | 10 | 18.6 | ||||
8 | 135 | |||||
9 | 15 | |||||
10 | 130 |
Refer to the information above to answer this question.What is the value of AVC if 3 units of labour are used?
Select one:
A.$18.60.
B.$1.50.
C.$10.
D.$5.
E.$6.67.
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Question text
The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought.
Units of Labour | TP | MP | AP | TVC $ | MC $ | AVC $ |
0 | 0 | / | / | 0 | / | / |
1 | 8 | 8 | 100 | |||
2 | 20 | |||||
3 | 45 | 25 | ||||
4 | 30 | 18.8 | ||||
5 | 20 | |||||
6 | 120 | 20 | ||||
7 | 10 | 18.6 | ||||
8 | 135 | |||||
9 | 15 | |||||
10 | 130 |
Refer to the information above to answer this question.As one reads down the TVC column, what is the pattern in the numbers?
Select one:
A.They continuously rise.
B.They fall until the fifth unit of labour used and then rise.
C.They continuously fall.
D.They rise until the fifth unit of labour used and then fall.
E.There is no clear pattern.
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