Refer to the Following:
Following Is a Firm's Expansion Path

question 48

Multiple Choice

Refer to the following:
Following is a firm's expansion path. The price of capital is $5 per unit; the price of labor is $2 per unit.

$\begin{array}{ccc}&\text { Optimal Imput Choice }\\\text { Units of Output } & \text { Units of Capital }&\text { Units of Labor } \\10 & 6 &5 \\20 & 8 & 10 \\30 & 13 & 20 \\\end{array}$
-When output is 30 units, what is long-run total cost?

• A) $60
• B) $105
• C) $150
• D) $260
• E) none of the above

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Definitions:

Island Arc

A curved chain of volcanic islands located at a tectonic plate margin, formed by the subduction of an oceanic plate.

Mantles Rise

The upward movement of mantle material in the Earth, often related to thermal convection and tectonic processes.

Rising Mantle

The ascent of mantle material towards the Earth's surface, potentially leading to volcanic activity where the crust is thin.

Descending Plate

A section of the earth's crust that moves downward into the mantle beneath another plate, often responsible for volcanic activity and earthquakes.