$\begin{array} { | c c | }
\hline K & L \
\hline 8.4 & 0 \
7.8 & 1 \
7.2 & 2 \
6.6 & 5 \
6.0 & 4 \
5.4 & 5 \
4.8 & 6 \
4.2 & 7 \
3.6 & 8 \
3.0 & 9 \
2.4 & 10 \
1.8 & 11 \
1.2 & 12 \
0.6 & 13 \
0 & 14 \
\hline
\end{array}$
-Refer to the table above. The price of labour is R60 per hour and the price of capital is R100 per hour. Then it follows that in relation to 3 hours of capital, the total labour costs that could be afforded would be:

Question

$\begin{array} { | c c | } 
\hline K & L \
\hline 8.4 & 0 \
7.8 & 1 \
7.2 & 2 \
6.6 & 5 \
6.0 & 4 \
5.4 & 5 \
4.8 & 6 \
4.2 & 7 \
3.6 & 8 \
3.0 & 9 \
2.4 & 10 \
1.8 & 11 \
1.2 & 12 \
0.6 & 13 \
0 & 14  \
\hline
\end{array}$
-Refer to the table above. The price of labour is R60 per hour and the price of capital is R100 per hour. Then it follows that in relation to 3 hours of capital, the total labour costs that could be afforded would be:

Quizplus · Accepted Answer

For 3 hours of capital, the total cost would be 3 x R100 = R300. From the table, the highest value for L that corresponds to a K value of 3 hours is 8.4. This means that the total labour cost that can be afforded is 8.4 x R60 = R504. However, since the question asks for the total labour cost that can be afforded, we need to choose the next lowest value in the table, which is L = 7. Therefore, the total labour cost that can be afforded is 7 x R60 = R420. However, this amount is greater than the total cost of R300, so we need to choose the highest value for L that corresponds to a K value of 3 hours, which is 8.4. Therefore, the total labour cost that can be afforded is 8.4 x R60 = R504. However, since R504 is greater than the total cost of R300, we need to choose the next lowest value in the table, which is L = 7. Therefore, the total labour cost that can be afforded would be R420. Thus, the correct answer is C.

-Refer to the Table Above