Refer to the information provided in Figure 7.9 below to answer the questions that follow.Units of capital8060 A0Answer: BDiff: 3Topic: Appendix: Isoquants and IsocostsSkill: Conceptual197Figure 7.96) Refer to Figure 7.9. If the price of capital is $25, then along isocost line AB total cost isA) $1200.B) $1500.C) $2000.D) indeterminate from this information since the price of labor is not given.Answer: BDiff: 2Topic: Appendix: Isoquants and IsocostsSkill: AnalyticB DE60 80 120Units of labor7) Refer to Figure 7.9. The firm is currently along isocost CD. If the price of capital is $25, then theprice of labor isA) $1.B) $25.C) $80.D) indeterminate from the information given.B) $24.8) Refer to Figure 7.9. The firm is currently along isocost CE. If the price of capital is $24, then theprice of labor isA) $16.C) $80.D) $120.Answer: A

Isocost curve is the curve where each point of the curve shows the same total cost. The isoquant…

Refer to the information provided in Figure 7.9 below to answer the questions that follow. Units of capital 80 60 A 0 Figure 7.9 6) Refer to Figure 7.9. If the price of capital is $25, then along isocost line AB total cost is A) $1200. Answer: B Diff: 3 Topic: Appendix: Isoquants and Isocosts Skill: Conceptual B D 60 80 Units of labor B) $1500. C) $2000. D) indeterminate from this information since the price of labor is not given. E 120 7) Refer to Figure 7.9. The firm is currently along isocost CD. If the price of capital is $25, then the price of labor is A) $1. B) $25. C) $80. D) indeterminate from the information given. Answer: B Diff: 2 Topic: Appendix: Isoquants and Isocosts Skill: Analytic B) $24. 8) Refer to Figure 7.9. The firm is currently along isocost CE. If the price of capital is $24, then the price of labor is A) $16. C) $80. D) $120. Answer: A

Refer to the information provided in Figure 7.9 below to answer the questions that follow. Units of capital 80 60 A 0 Figure 7.9 6) Refer to Figure 7.9. If the price of capital is $25, then along isocost line AB total cost is A) $1200. Answer: B Diff: 3 Topic: Appendix: Isoquants and Isocosts Skill: Conceptual B D 60 80 Units of labor B) $1500. C) $2000. D) indeterminate from this information since the price of labor is not given. E 120 7) Refer to Figure 7.9. The firm is currently along isocost CD. If the price of capital is $25, then the price of labor is A) $1. B) $25. C) $80. D) indeterminate from the information given. Answer: B Diff: 2 Topic: Appendix: Isoquants and Isocosts Skill: Analytic B) $24. 8) Refer to Figure 7.9. The firm is currently along isocost CE. If the price of capital is $24, then the price of labor is A) $16. C) $80. D) $120. Answer: A

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

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