The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit. Based on the above,if the firm produces 80 units of output,what is its total cost of production?
A)$540
B)$1,600
C)$1,900
D)$5,040
E)none of the above

Question

The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit.  Based on the above,if the firm produces 80 units of output,what is its total cost of production?
A)$540 
B)$1,600 
C)$1,900 
D)$5,040 
E)none of the above

Quizplus · Accepted Answer

The Answer of The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit.  Based on the above,if the firm produces 80 units of output,what is its total cost of production?
A)$540 
B)$1,600 
C)$1,900 
D)$5,040 
E)none of the above

The Capital Stock Is Fixed at 5 Units,the Price of Capital