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Upon Opening a Printing and Copy Shop, a Firm Budgets

Question 50

Multiple Choice

Upon opening a printing and copy shop, a firm budgets $40,000 for copy machines and labor. If the price of labor is $5 per hour and the firm can afford to operate its copy machine for 5,000 hours if it hires no labor, the slope of an isocost line when labor is measured on the horizontal axis is


A) -5/8
B) -8/5
C) -1/5
D) -5
E) -1/4

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