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Suppose a Firm's Current Total Cost of Production Is $50,000

Question 1

Multiple Choice

Suppose a firm's current total cost of production is $50,000 per week,the wage rate is $1,000 per week and the cost of capital is $2,500.Which of the following gives the general equation for the firm's isocost lines for total cost C?


A) C = 20 - 0.5L
B) C = 2,500K - 0.5L
C) K = (C/2,500) - (C/1,000)
D) K = (C/2,500) - 0.4L

Correct Answer:

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