7. The firm is currently along isocost CE. If the price of capital is 30, then the price of labor i60WRONGANS8060 ●ABD60 80120Units of labor8. Tom borrowed Php500,000 from her parents to open a spa. He pays her parents a 5%yearly return on the money they lent her. Her other yearly fixed costs equal Php150,000and his variable costs equal Php200,000. In her first year, Tom had a total of 2,000customers at a price of Php300/customer. Tom's total economic profit is?Units of capital

Given: Price of capital=30 Isocost: CE To find: Price of labor Note: Due to multiple questions being…

Answered: 7. The firm is currently along isocost…

7. The firm is currently along isocost CE. If the price of capital is 30, then the price of labor is 80 60 A BD 60 80 120 Units of labor Units of capital

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.7P

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Question

7. The firm is currently along isocost CE. If the price of capital is 30, then the price of labor i
60
WRONG
ANS
80
60 ●A
BD
60 80
120
Units of labor
8. Tom borrowed Php500,000 from her parents to open a spa. He pays her parents a 5%
yearly return on the money they lent her. Her other yearly fixed costs equal Php150,000
and his variable costs equal Php200,000. In her first year, Tom had a total of 2,000
customers at a price of Php300/customer. Tom's total economic profit is
?
Units of capital

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