Use the table to answer the question.

Question

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)
Responses

$50
50 dollars

$10
10 dollars

$80
80 dollars

$16
16 dollars
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page 12 of 12

Answer 1

$10

Each additional unit of labor incurs a variable cost of $10, as the variable cost increases by $80 for each additional 5 workers.