At a Given Output Level, If the Cost of Capital

question 12

Multiple Choice

At a given output level, if the cost of capital is $40 per hour, the wage paid to employees is $30 per hour, the marginal product of capital is 120 units per hour, and the marginal product of labor is 90 units per hour, the firm is ________ .

• A)on a short- run average total cost curve, but not the long- run average cost curve
• B)on the long- run average total cost curve, but not a short- run average cost curve
• C)on neither a short- run average total cost curve nor the long- run average cost curve
• D)on both a short- run average total cost curve and the long- run average cost curve

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Definitions:

Medial Cuneiform

A bone in the foot located at the base of the first metatarsal bone, contributing to the arch of the foot.

Metatarsal I

Refers to the first bone of the metatarsal bones in the foot, connecting the ankle to the toes.

Metacarpal I

The first bone in the series of five metacarpal bones of the hand, associated with the thumb, providing support and facilitating movement.

Subpubic Angle

The angle formed below the pubic symphysis, varying in width between sexes and used in determining skeletal sex.