10. The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000.
10. The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000.
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.7P
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Question
![10.
the olowing graph shows the marginal and average product curves for labor,
the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is
$120,000.
+ APMP
100
80
60
MP
AP
20
40
60
80
100
120
140
10
Labor
What is AVC at its minimum?
Multiple Choice
O $80
when AP is maximzed
O $15
. O$25
.O$40
120000
. O$100
2,000
Ave rage ard m arginal prodictof labor](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11c926d0-f0fc-4f83-b661-08a1b6de9028%2Fa6c20bba-63e7-4a6c-922a-786e1aad63f1%2Femu9c8d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:10.
the olowing graph shows the marginal and average product curves for labor,
the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is
$120,000.
+ APMP
100
80
60
MP
AP
20
40
60
80
100
120
140
10
Labor
What is AVC at its minimum?
Multiple Choice
O $80
when AP is maximzed
O $15
. O$25
.O$40
120000
. O$100
2,000
Ave rage ard m arginal prodictof labor
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