Refer to the Following Graph

question 60

Multiple Choice

Refer to the following graph.The price of capital (r) is $20. What is the lowest possible cost at which 14,000 units of output can be produced?

• A)$8,600
• B)$2,400
• C)$3,600
• D)$4,200
• E)none of the above

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Definitions:

Decrease in Price

A reduction in the cost at which goods or services are sold, often leading to increased demand.

Increase in Quantity

A rise in the amount of goods or services produced or supplied.

Market Equilibrium

The state in which market supply and demand balance each other, leading to stable prices.

Prices of Resources

Refers to the cost associated with the inputs required for production, including labor, capital, and materials.