22. A firm uses labor and capital, (L,K), to produce an output. The hourly cost of labor is $10, and the hourly cost of capital is $50. Which of the following combinations of labor and capital hours of use represent points on the firm’s $100,000 isocost line? a) (10000, 2000) b) (2000, 10000) c) (1000, 1800) d) (1000, 1000)
22. A firm uses labor and capital, (L,K), to produce an output. The hourly cost of labor is $10, and the hourly cost of capital is $50. Which of the following combinations of labor and capital hours of use represent points on the firm’s $100,000 isocost line? a) (10000, 2000) b) (2000, 10000) c) (1000, 1800) d) (1000, 1000)
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.9P
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Question
22. A firm uses labor and capital, (L,K), to produce an output. The hourly cost of labor is
$10, and the hourly cost of capital is $50. Which of the following combinations of labor and capital hours of use represent points on the firm’s $100,000 isocost line?
-
a) (10000, 2000)
-
b) (2000, 10000)
-
c) (1000, 1800)
-
d) (1000, 1000)
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