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(Figure: Capital and Labor VI) Suppose a Firm Spends $4,000

Question 79

Multiple Choice

(Figure: Capital and Labor VI) Suppose a firm spends $4,000 per day producing a good. The wage rate per worker is $200 per day and rental rate per unit of capital is $500 per day. The firm's isocost line at the current expenditure level is represented by: (Figure: Capital and Labor VI) Suppose a firm spends $4,000 per day producing a good. The wage rate per worker is $200 per day and rental rate per unit of capital is $500 per day. The firm's isocost line at the current expenditure level is represented by: A) C<sub>1</sub>. B) C<sub>2</sub>. C) C<sub>3</sub>. D) C<sub>4</sub>.


A) C1.
B) C2.
C) C3.
D) C4.

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