Refer to the Following Graph

question 22

Multiple Choice

Refer to the following graph.The price of capital (r) is $20. What combination of labor (L) and capital (K) can produce 5,000 units of output at lowest cost?

• A)90K,60L
• B)110K,10L
• C)42K,52L
• D)60K,20L
• E)10K,110L

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.

Inflation Rate

The speed at which the overall price level for goods and services increases, leading to a decrease in buying power.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, a key economic indicator of a country's economic health.

Bowers V. Hardwick

A controversial 1986 Supreme Court decision upholding a Georgia sodomy law, later overturned by Lawrence v. Texas in 2003.