Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, this firm's total cost of producing one unit of output is
A) $100.
B) \$120.
C) $220.
D) indeterminate from this information.
D) indeterminate from this information.
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A corporation can raise funds by
a. selling stock in the corporation. b. issuing bonds. c. borrowing from the bank. d. All of these.
A profit-maximizing monopolist will never produce at an output level where: a. demand is elastic
b. it suffers economic losses in the short run. c. demand is inelastic. d. marginal cost is less than average total cost.
What contributed to the United States recession of 2007-2009?
a. High Federal budget deficit b. Deflation in commodity prices and reduction in consumer saving c. Bank failure, panic among investors, and lack of confidence in paper currency d. Stock market collapse, drop in real estate values, and a drop in consumer spending
A manufacturing company is thinking about building a new factory. The factory, if built, will yield the company $300 million in 7 years, and it would cost $220 million today to build. The company will decide to build the factory if the interest rate is
a. no less than 4.53 percent. b. no greater than 4.53 percent. c. no less than 5.81 percent. d. no greater than 5.81 percent.