In the following graph,the price of capital is $100 per unit; the price of labor is $25 per unit.When output is 30 units,what is TOTAL cost?
A)$1,000
B)$2,000
C)$10,000
D)$20,000
E)none of the above

Question

In the following graph,the price of capital is $100 per unit; the price of labor is $25 per unit.When output is 30 units,what is TOTAL cost? 
A)$1,000 
B)$2,000 
C)$10,000 
D)$20,000 
E)none of the above

Quizplus · Accepted Answer

To find total cost, we need to find the total cost of capital and the total cost of labor, and then add them together. 
At 30 units of output: 
- The quantity of capital used is 3. 
- The total cost of capital is 3 x $100 = $300. 
- The quantity of labor used is 6. 
- The total cost of labor is 6 x $25 = $150. 
- Total cost is $300 + $150 = $450. 
Therefore, the correct answer is C) $10,000.

In the Following Graph,the Price of Capital Is $100 Per