Refer to the information provided in Table 8.4 below to answer the question(s) that follow.
Table 8.4
$$\begin{array} { c c c c }
\hline \text { Produce } & \text { Using Techniques } & \text { Units of Variable K } & \text { Inputs L } \
\hline 1 \text { unit of output } & \text { A } & 4 & 4 \
\hline & \text { B } & 2 & 6 \
\hline 2 \text { units of output } & & & \
\hline & \text { A } & 7 & 6 \
\hline& \text { B } & 4 & 10 \
\hline 3 \text { units of output } &\text { A } &8 & 6 \
\hline &\text { B } & 6& 11 \
\hline
\end{array}$$
-Refer to Table 8.4. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the lowest long-run total cost of producing one unit of output is
A) $8.
B) $50.
C) $60.
D) $110.

Question

Refer to the information provided in Table 8.4 below to answer the question(s) that follow.
Table 8.4
 $$\begin{array} { c c c c } 
\hline \text { Produce } & \text { Using Techniques } & \text { Units of Variable K } & \text { Inputs L } \
\hline 1 \text { unit of output } & \text { A } & 4 & 4 \
\hline & \text { B } & 2 & 6 \
\hline 2 \text { units of output } & & & \
\hline & \text { A } & 7 & 6 \
\hline& \text { B } & 4 & 10 \
\hline 3 \text { units of output } &\text { A }  &8 & 6 \
\hline &\text { B } & 6& 11 \
\hline
\end{array}$$
-Refer to Table 8.4. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the lowest long-run total cost of producing one unit of output is
A) $8.
B) $50.
C) $60.
D) $110.

Quizplus · Accepted Answer

To find the lowest long-run total cost of producing one unit of output, calculate the total cost for each technique (A and B) for one unit of output using the given prices for capital (K) and labor (L). For Technique A: Cost = (4 units of K * $10) + (4 units of L * $5) = $40 + $20 = $60. For Technique B: Cost = (2 units of K * $10) + (6 units of L * $5) = $20 + $30 = $50. Therefore, the lowest cost is $50.

Refer to the Information Provided in Table 8 -Refer to Table 8