20) Assume the price of labor (L) is 5 per unit, the price of capital (K) is 10 per unit, and that firms attempt to minimize costs. The total variable cost of producing one unit of output is A) 16 . B) 100 . C) 120 . D) 220 .

To determine the total variable cost of producing one unit of output, we need to consider the prices of labor and capital.<br /><br />Given:<br />- Price of labor (L) = $5 per unit<br />- Price of capital (K) = $10 per unit<br /><br />The total variable cost (TVC) is the sum of the variable costs of labor and capital. Assuming that the firm uses one unit of labor and one unit of capital to produce one unit of output, the total variable cost would be:<br /><br />TVC = (Price of labor * Quantity of labor) + (Price of capital * Quantity of capital)<br /><br />TVC = ($5 * 1) + ($10 * 1)<br /><br />TVC = $5 + $10<br /><br />TVC = $15<br /><br />Therefore, the correct answer is A) $16.