(Figure: Capital and Labor VI) Suppose a firm spends $4,000 per day producing a good. The wage rate per worker is $200 per day and rental rate per unit of capital is $500 per day. The firm's isocost line at the current expenditure level is represented by: 
Definitions:
Safety Stock
Safety stock is additional inventory held by a business to prevent stockouts caused by variations in supply and demand.
Cash Flow
Cash Flow refers to the net amount of cash being transferred into and out of a business, indicating the company's liquidity over a certain period.
Precautionary Need
The motive to hold cash or assets to safeguard against unexpected emergencies or transactions.
Speculative Need
A financial concept where individuals or businesses hold cash or assets in speculation of market changes, expecting to profit from fluctuations in prices or exchange rates.
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