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

question 41

Multiple Choice

In the following graph,the price of capital is $100 per unit.How many units of capital should a firm use in order to produce 500 units of output at the least cost?

• A)10 units of capital
• B)12 units of capital
• C)14 units of capital
• D)20 units of capital
• E)none of the above

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Definitions:

Occurrence

Occurrence refers to the act or fact of happening or existing in a particular time or place.

Variables

Elements or features that can assume different values in a dataset or experiment.

Assumptions

Premises or conditions accepted as true without proof, used as a foundation for reasoning or calculations.

NPV

Net Present Value, a financial metric used to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.