The Figure Below Shows the Isocost Lines and the Isoquant

question 101

Multiple Choice

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees. FIGURE 8- 6
-Refer to Figure 8- 6. Suppose this firm is producing 4000 golf tees with 10 units of capital and 25 units of labour. The marginal rate of substitution between capital and labour is

• A) 100.
• B) 40.
• C) 0.025.
• D) 0.4.
• E) 2.5.