Question

Use the table to answer the question.

Worker Output and Costs
Number of Workers Output Total Cost Variable Cost Fixed Cost
5 100 $130 $80 $50
10 180 $210 $160 $50
15 240 $290 $240 $50
20 280 $370 $320 $50
If the cost of labor is the only variable cost that the firm faces, what is the cost incurred by the business for each additional unit of labor?

(1 point)

$80


$16


$50


$10

Answer 1

Variable cost rises from $80 (5 workers) to $160 (10 workers), an increase of $80 for 5 additional workers → $80/5 = $16 per worker. So $16.