Refer to the information provided in Table 8.4 below to answer the question(s) that follow.
Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assume that the relevant time period is the short run. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, this firm's total cost of producing one unit of output is
A. $50.
B. $60.
C. $110.
D. indeterminate from this information.
Answer: D
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Economists should consider ________ when evaluating options
A) only explicit costs and benefits B) only implicit costs and benefits C) both explicit and implicit costs and benefits D) neither explicit nor implicit costs and benefits
Being a monopolist in the market
a. guarantees a positive short-run profit. b. guarantees a positive long-run profit. c. does not contradict with the rule that profit is maximized where MR = MC. d. All of the above are correct.
Which statement is true?
A. The federal budget deficit reached a peak in 1992 and has been declining since then. B. The federal budget deficit in fiscal year 1997 was at a record high. C. Because we ran federal budget surpluses since 1998, the national debt is falling. D. The federal government ran budget surpluses from 1998 to 2001, but returned to deficits since 2002.
Consumer surplus increases as the price of a good decreases.
Answer the following statement true (T) or false (F)