Consider, for Example, a Case in Which L (Labour) =

question 45

Multiple Choice

Consider, for example, a case in which L (Labour) = €10 per labour hour, K (Capital) = €20 per capital hour, and the budget = €200 an hour. Then the Isocost line is described by the equation:

• A) 200 = 20K + 10L
• B) K= 200/ 20 - (10/20)L
• C) K= 10 - 0.5L
• D) All of the above.

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