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Suppose that in the short-run (Labor is the only variable input) when output equals 50, (1) the firm uses 5 workers and pays them a wage $40 and (2) total fixed costs equal $200. Which of the following is NOT correct? O Total Variable Cost (TVC)= $200 Average Variable Cost (AVC) = $4 Average Fixed Cost (AFC) = $8 Average Total Cost (ATC) = $8

Suppose that in the short-run (Labor is the only variable input) when output equals 50, (1) the firm uses 5 workers and pays them a wage $40 and (2) total fixed costs equal $200. Which of the following is NOT correct? O Total Variable Cost (TVC)= $200 Average Variable Cost (AVC) = $4 Average Fixed Cost (AFC) = $8 Average Total Cost (ATC) = $8

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 19RQ: What shapes would you generally expect each of the following cost curves to have: fixed costs,...
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Suppose that in the short-run (Labor is the only variable input) when output equals 50, (1) the firm uses 5 workers and pays them a wage $40 and (2) total fixed costs equal $200. Which of the following is NOT correct? Total Variable Cost (TVC)= $200 Average Variable Cost (AVC) = $4 O Average Fixed Cost (AFC) = $8 O Average Total Cost (ATC) = $8
Transcribed Image Text:Suppose that in the short-run (Labor is the only variable input) when output equals 50, (1) the firm uses 5 workers and pays them a wage $40 and (2) total fixed costs equal $200. Which of the following is NOT correct? Total Variable Cost (TVC)= $200 Average Variable Cost (AVC) = $4 O Average Fixed Cost (AFC) = $8 O Average Total Cost (ATC) = $8
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