Refer to the information provided in Figure 7.10 below to answer the question(s) that follow. 
Figure 7.10Refer to Figure 7.10. If the isocost line represents a total cost of $2,400, then the firm's cost of capital is ________ per unit and its cost of labor is ________ per unit.
A. $12; $24
B. $24; $12
C. $2; $1
D. $10; $20
Answer: B
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When dealing with negative externalities, government action is required
A) only if transactions cost are low. B) for any bargain to be successful. C) only in environmental disputes. D) only if transactions costs preclude bargaining between polluter and victim.
When organizing a collective action, it is generally true that the larger the group the:
A. higher the costs and benefits per person. B. lower the costs and benefits per person. C. higher the costs and lower the benefits per person. D. lower the costs and higher the benefits per person.
Which products are most likely to be most price elastic?
A. China and glassware B. Sugar and eggs C. Electricity and housing D. Clothing and auto repair
If an increase in the price of accordions does not change total revenue from accordion sales, we can infer that demand for accordions is inelastic.
Answer the following statement true (T) or false (F)