Upon Opening a Printing and Copy Shop, a Firm Budgets

Multiple Choice

Upon opening a printing and copy shop, a firm budgets $30,000 for copy machines and labor. The firm can operate its copy machine for 2,000 hours if it buys no labor. What is the vertical intercept of the isocost line when labor is measured on the horizontal axis?

A) 15 hours of labor
B) 500 hours of labor
C) 15 hours of copy machine operation
D) 2,000 hours of copy machine operation
E) $960,000