Refer to the information provided in Figure 7.9 below to answer the questions that follow.Units of capital8060 A0Answer: BDiff: 3Topic: Appendix: Isoquants and IsocostsSkill: Conceptual197Figure 7.96) Refer to Figure 7.9. If the price of capital is $25, then along isocost line AB total cost isA) $1200.B) $1500.C) $2000.D) indeterminate from this information since the price of labor is not given.Answer: BDiff: 2Topic: Appendix: Isoquants and IsocostsSkill: AnalyticB DE60 80 120Units of labor7) Refer to Figure 7.9. The firm is currently along isocost CD. If the price of capital is $25, then theprice of labor isA) $1.B) $25.C) $80.D) indeterminate from the information given.B) $24.8) Refer to Figure 7.9. The firm is currently along isocost CE. If the price of capital is $24, then theprice of labor isA) $16.C) $80.D) $120.Answer: A

Isocost curve is the curve where each point of the curve shows the same total cost. The isoquant…

Refer to the information provided in Figure 7.9 below to answer the questions that follow. Units of capital 80 60 A 0 Figure 7.9 6) Refer to Figure 7.9. If the price of capital is $25, then along isocost line AB total cost is A) $1200. Answer: B Diff: 3 Topic: Appendix: Isoquants and Isocosts Skill: Conceptual B D 60 80 Units of labor B) $1500. C) $2000. D) indeterminate from this information since the price of labor is not given. E 120 7) Refer to Figure 7.9. The firm is currently along isocost CD. If the price of capital is $25, then the price of labor is A) $1. B) $25. C) $80. D) indeterminate from the information given. Answer: B Diff: 2 Topic: Appendix: Isoquants and Isocosts Skill: Analytic B) $24. 8) Refer to Figure 7.9. The firm is currently along isocost CE. If the price of capital is $24, then the price of labor is A) $16. C) $80. D) $120. Answer: A

Refer to the information provided in Figure 7.9 below to answer the questions that follow. Units of capital 80 60 A 0 Figure 7.9 6) Refer to Figure 7.9. If the price of capital is $25, then along isocost line AB total cost is A) $1200. Answer: B Diff: 3 Topic: Appendix: Isoquants and Isocosts Skill: Conceptual B D 60 80 Units of labor B) $1500. C) $2000. D) indeterminate from this information since the price of labor is not given. E 120 7) Refer to Figure 7.9. The firm is currently along isocost CD. If the price of capital is $25, then the price of labor is A) $1. B) $25. C) $80. D) indeterminate from the information given. Answer: B Diff: 2 Topic: Appendix: Isoquants and Isocosts Skill: Analytic B) $24. 8) Refer to Figure 7.9. The firm is currently along isocost CE. If the price of capital is $24, then the price of labor is A) $16. C) $80. D) $120. Answer: A

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.8P

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