Assume that a firm spends $500 on two inputs, labor (graphed on the horizontal axis) and capital (graphed on the vertical axis)
If the wage rate is $20 per hour and the rental cost of capital is $25 per hour, the slope of the isocost curve will be A) 500.
B) 25/500.
C) -4/5.
D) 25/20 or 1.25.
C
You might also like to view...
The explanation for the law of demand begins with
a. a small number of wants satisfied by scarce resources b. finite wants satisfied by infinite resources c. unlimited wants confronting scarce resources d. unlimited wants matching up with unlimited resources e. prices acting as signals to existing and potential suppliers
An increase in a U.S. resident's income earned in Japan implies a/an
A. increase the United States' Gross Domestic Product. B. decrease Japan's Gross Domestic Product. C. decrease the United States' Gross Domestic Product. D. increase Japan's Gross Domestic Product.
In the study conducted by Miles Corak, which of the following countries had the strongest relationship between parental and child income?
A. France B. United States C. United Kingdom D. Denmark
Which of the following is considered a contributive standard for the distribution of income?
A. rewarding workers according to their productivity B. rewarding workers according to the number of their dependents C. rewarding workers according to their needs D. all of these