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Refer to the Following:
the Capital Stock Is Fixed at 5

Question 61

Multiple Choice

Refer to the following:
The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit.

 units of  units of  Labor  Output 21042604686010721280\begin{array} { c c } \text { units of } & \text { units of } \\\text { Labor } & \text { Output } \\\hline 2 & 10 \\4 & 26 \\0 & 46 \\8 & 60 \\10 & 72 \\12 & 80\end{array}
-If the firm produces 80 units of output, what is its total cost of production?


A) $540
B) $1,600
C) $1,900
D) $5,040
E) none of the above

Correct Answer:

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