Pearson eText for Principles of Macroeconomics -- Combo Access Card
13th Edition
ISBN: 9780135662182
Author: CASE, Karl, Fair, Ray, Oster, Sharon
Publisher: PEARSON
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Question
Chapter 2, Problem 1.5P
Subpart (a)
To determine
Trade-off situation and
Subpart (b)
To determine
Trade-off situation and opportunity cost involved in statement.
Subpart (c)
To determine
Trade-off situation and opportunity cost involved in statement.
Subpart (d)
To determine
Trade-off situation and opportunity cost involved in statement.
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Students have asked these similar questions
PL
Suppose the price ratio
is the same along isocost
PK
lines A and B. In the figure at right, the difference between
isocost line A and isocost line B is that
A. the total cost is larger along B.
B. the total cost is larger along A.
OC. labour is relatively more expensive along A.
○ D. the level of output is lower along A.
OE. both capital and labour are relatively cheaper
along A.
Capital
B
Labour
Using the graph on the right, determine the per unit prices
of capital and labour.
20-
Given the information provided about the isocost lines, we
know that the per unit price of capital is
TC=$100
and the
per unit price of labour is
16-
TC $80
○ A. $50; $20
○ B. $2; $5
○ C. $5; $2
○ D. $20; $50
E. not determinable; not determinable
Quantity of K
12
TC $60
TC $40
0
10
20
30
Quantity of L
40
The diagram to the right contains isocost lines A and B.
If the price of capital is the same for both lines, then the
difference between isocost line A and isocost line B is that
OA. the total cost is larger along B.
B. the level of output is lower along A.
C. both capital and labour are cheaper along A.
OD. labour is more expensive along A.
○ E. labour is more expensive along B.
Capital
Labour
Chapter 2 Solutions
Pearson eText for Principles of Macroeconomics -- Combo Access Card
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