Labor Input Output Marginal Physical Fixed Variable Total Avg Fixed Avg Variable Avg Total Marginal Cost Price Total Revenue Marginal Profit Unit cost = $15 Product (MPP) of Labor Cost Cost Cost Cost Cost Cost (MC) Revenue 0 21 1 1 20 2 3 36 4 10 5 13 6 15 7 16 8 17 For Problems 4-5, use the table below and assume the following are true: The only variable input is labor while the amount of capital used is fixed and its cost shown in table as fixed cost Variable cost only comes from labor with cost per unit shown in table All output can be sold at prices shown in table 4. What is the value of average variable cost when labor input is 7? a. $6.56 b. $7 c. $7.50 d. $10 e. $15