Answer the Question on the Basis of the Following Data

question 45

Multiple Choice

Answer the question on the basis of the following data: $\begin{array}{cccccc}Quantity &MP of& MRP of &\text{Quantity of}& MP of &MRP of\\of Labor& Labor& Labor& Capital &Capital &Capital\\\hline1 & 15 & \$ 45 & 1 & 8 & \$ 24 \\2 & 12 & 36 & 2 & 6 & 18 \\3 & 9 & 27 & 3 & 5 & 15 \\4 & 6 & 18 & 4 & 4 & 12 \\5 & 3 & 9 & 5 & 3 & 9 \\6 & 1 & 3 & 6 & 2 & 6\end{array}$ Refer to the given data.If the prices of labor and capital are $9 and $15 respectively,and labor and capital are the only inputs,at the profit-maximizing level of output,the firm's total costs will be:

• A) $106.
• B) $126.
• C) $47.
• D) $90.

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Definitions:

GDP Deflator

A measure of the price level for all new, domestically produced, final goods and services in an economy, used to convert nominal GDP into real GDP.

Base Year

A specific year against which economic growth or other economic variables are measured.

Nominal GDP

The market value of all final goods and services produced within a country in a given period, measured using current prices without adjustment for inflation.

Real GDP

An assessment of a country's economic production that is corrected for price fluctuations due to inflation or deflation, demonstrating the actual volume of goods and services created.