At a Given Output Level, If the Cost of Capital

question 2

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 120 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:

Smooth

A type of involuntary muscle tissue found in internal organs.

Walls

Structures designed to divide or enclose areas, commonly constructed from materials like brick, stone, or wood.

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Structures composed of different tissues that perform specific functions within an organism, such as the heart, liver, or lungs.

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Genetic testing to identify mutations in the BRCA1 and BRCA2 genes, which can increase the risk of developing breast and ovarian cancer.