Following Is a Firm's Expansion Path $\quad$ $\quad$ $\quad$

question 25

Multiple Choice

Following is a firm's expansion path.The price of capital is $5 per unit; the price of labor is $2 per unit. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Ontimal Input Choice }$
$\begin{array}{c}\begin{array}{c}\text {Units of Output}\\10\\20\\30\end{array}\begin{array}{c}\text {Units of Capital}\\6\\8\\13\end{array}\begin{array}{c}\text {Units of Labor}\\5\\10\\20\end{array}\end{array}$
How much does the 10th unit of output add to long-run total cost?

• A)zero
• B)$3
• C)$4
• D)$40
• E)none of the above

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Definitions:

Discount Date

The specified date on which a discount is applied or becomes effective, often used in the context of payments or billing.

Due Date

The specified date by which a payment, assignment, or project must be completed or submitted.

Cash Discount

A reduction in the price of goods or services offered by the seller to encourage prompt payment by the buyer.

Discount Date

The date on which a payment is to be made earlier than its originally scheduled due date at a reduced rate.