Item 9The following graph shows the marginal and average product curves for labor, the firm's onlyvariable input. The monthly wage for labor is $2,000. Fixed cost is $120,000.| APMP1008060MPAP60801001201401602040LaborWhen the firm uses 100 units of labor, what is marginal cost at this level of output?Multiple Choices$33.33$25= %O $180O $90Ave rage aid m arginal prodictof labor20

When L = 60, TVC = 2,000 x 60 = 120,000 AVC = TVC / Q = 120,000 / 3,600 = $33.33

Answered: Item 9 The following graph shows the…

Item 9 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. APMP

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 3.7P

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Question

Item 9
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.
| APMP
100
80
60
MP
AP
60
80
100
120
140
160
20
40
Labor
When the firm uses 100 units of labor, what is marginal cost at this level of output?
Multiple Choices
$33.33
$25
= %
O $180
O $90
Ave rage aid m arginal prodictof labor
20

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