Cost of Production

The following questions refer to the diagram below. The wage rate is assumed to be $12 per hour, the rental rate is assumed to be $6 per hour, and capital is assumed to be fixed in the short run at 10 hours.

-Refer to Cost of Production.The short-run total cost of producing 50 units of output per week is $180,but the long-run total cost is
A) $180.
B) $270.
C) $300.
D) $900.

Question

Cost of Production

The following questions refer to the diagram below. The wage rate is assumed to be $12 per hour, the rental rate is assumed to be $6 per hour, and capital is assumed to be fixed in the short run at 10 hours.

-Refer to Cost of Production.The short-run total cost of producing 50 units of output per week is $180,but the long-run total cost is
A) $180. 
B) $270. 
C) $300. 
D) $900.

Quizplus · Accepted Answer

The short-run total cost for producing 50 units per week is $180. It is not specified what the long-run situation is, but it is possible that the cost could be the same depending on the firm's technology, fixed costs, and other factors. Therefore, A) $180 is the best choice.

Cost of Production The Following Questions Refer to the Diagram Below. the Wage