Suppose a firm's total cost of production is $40,000 per week,the wage rate is $1,000 per week and the cost of capital is $2,000.Which of the following gives the equation for the firm's isocost line?

Question

Quizplus · Accepted Answer

The isocost line equation is K = 20 - 0.5L, where K is the cost of capital and L is the labor cost. The total cost of production is $40,000 per week, the wage rate is $1,000 per week, and the cost of capital is $2,000. So, the equation for the isocost line is K = 20 - 0.5L.

Suppose a Firm's Total Cost of Production Is $40,000 Per