Solved

Let a Firm Use Labor (L)( L ) And Capital (K)( K )

Question 28

Multiple Choice

. Let a firm use labor (L) ( L ) and capital (K) ( K ) as its only inputs to produce an output, QQ . The cost of labor is w=$5w = \$ 5 per labor hour and the cost of capital is r=$15r = \$ 15 per machine hour. When capital is measured on the vertical axis and labor on the horizontal axis, what is the slope of an isocost line for this firm?


A) 3- 3 .
B) 5- 5 .
C) 15- 15 .
D) 1/3- 1 / 3 .

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents