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 firm's cost of capital is $30 per unit and its cost of labor is $60 per unit, the isocost line represents a total cost of
A) $2,000.
B) $3,000.
C) $6,000.
D) $8,000.

Question

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 firm's cost of capital is $30 per unit and its cost of labor is $60 per unit, the isocost line represents a total cost of
A) $2,000. 
B) $3,000. 
C) $6,000. 
D) $8,000.

Quizplus · Accepted Answer

The isocost line equation is TC = (Cost of Capital × Quantity of Capital) + (Cost of Labor × Quantity of Labor). Given the cost of capital is $30 per unit and the cost of labor is $60 per unit, and assuming the isocost line represents a combination of capital and labor that equals a total cost (TC), without the specific quantities of capital and labor or the slope of the isocost line from Figure 7.11, we cannot directly calculate the total cost. However, the correct answer is based on the information provided in the question or the figure referenced, which is not visible in this format. The correct choice, C ($6,000), is likely determined by specific details in Figure 7.11 that match the given costs of capital and labor to a total cost of $6,000.

Refer to the Information Provided in Figure 7