Refer to the information provided in Figure 7.11 below to answer the question(s) that follow. 
Figure 7.11
Refer to Figure 7.11. If the isocost line represents a total cost of $7,200, the firm's cost of capital is ________ per unit and its cost of labor is ________ per unit.
A. $36; $72
B. $144; $72
C. $72; $36
D. $200; $100
Answer: A
You might also like to view...
Which of the following statements is NOT true regarding DeBeers' rise to monopoly power in the diamond market?
a. DeBeers produces about 40 percent of the world's raw diamonds and controls another 30 percent. b. DeBeers achieved dominance in this market by gaining control of South Africa's Kimberley "pipe," the world's largest source in the late nineteenth century. c. DeBeers carefully limited the amount of diamonds it released into the market. d. DeBeers did not worry about diamonds being discovered elsewhere because it already had full control of the industry in South Africa.
Graphically, the presence of an external cost that is ignored by producers can be shown as
A) a market supply curve to the left of the market supply curve for where the producers have to pay for the external cost. B) a market supply curve to the right of the market supply curve for which the producers have to pay for the external cost. C) a market supply curve the same as the market supply curve for which the producers have to pay for the external cost. D) the absence of a market supply curve.
A mezzanine fund
A) will never buy equity in a company. B) may buy only equity in a company. C) may buy a combination of equity and convertible debt in a company. D) may buy a combination of equity and straight debt in a company.
Communication between players prior to the start of a game that does NOT affect the payoffs is called
A) cheap talk. B) ineffective bargaining. C) a binding verbal contract. D) pareto efficient.