A firm uses labor (L) and capital (K) to produce outputs. The following graph shows the iso-quant curves and iso-cost curves facing this firm. The iso-quant curves are the L-shaped curves. Suppose the wage rate of labor is $200 (per day) and the rental rate of capital is $100 (per day). What is the cost of producing 20 units of output (per day) when both labor and capital are variable inputs? Notice that both inputs are variable. O 400 600 O 1000 O 1200 800

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