Multiple Choice
producer is hiring 20 units of labor and 6 units of capital (bundle A) .The price of labor is $10,the price of capital is $2,and at A,the marginal products of labor and capital are both equal to 20.Beginning at A,if the producer increases labor by one unit and decreases capital by 1 unit,then
A) cost remains constant and output increases by 20 units.
B) cost remains constant and output decreases by 20 units.
C) output remains constant and cost increases by $8.
D) output remains constant and cost decreases by $8.
E) both cost and output remain constant.
Correct Answer:

Verified
Correct Answer:
Verified
Q67: Learning economies differ from economies of scale
Q68: The slope of an isoquant is<br>A)-∆K/∆L.<br>B)MP<sub>L</sub> /
Q69: producer is hiring 20 units of labor
Q70: In the graph below,the price of capital
Q71: Long-run total cost<br>A)represents the lowest possible total
Q73: A dry cleaner currently has 10 workers
Q74: A sofa manufacturer currently is using 50
Q75: Refer to the following figure.The price of
Q76: You read a story in the newspaper
Q77: A firm is using 500 units of