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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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