Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. If the price of capital is $20, then along isocost line AB total cost is
A. $300.
B. $1,200.
C. $2,400.
D. indeterminate from this information, as the price of labor is not given.
Answer: B
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