QUESTION 10 Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when 5 units of output are produced, the total cost is 175 dirhams, and the average variable cost is 30 dirhams. What would the average fixed cost be if 10 units were produced?
QUESTION 10 Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when 5 units of output are produced, the total cost is 175 dirhams, and the average variable cost is 30 dirhams. What would the average fixed cost be if 10 units were produced?
Chapter6: Proudction Costs
Section: Chapter Questions
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Transcribed Image Text:QUESTION 10
Suppose that for a particular firm the only variable input into the production process is labor
and that output equals zero when no workers are hired. In addition, suppose that when 5
units of output are produced, the total cost is 175 dirhams, and the average variable cost is
30 dirhams. What would the average fixed cost be if 10 units were produced?
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