Question

Suppose a firm spends $1,000 per day producing scooters. The wage (w) rate per worker (L) is $200 per day and rental rate (r)

A. TC1


B. TC2


C. TC3


D. TC4

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Answer #1

Ans) the correct option is c) TC3

Labor = 1000/200 = 5

Capital = 1000/100 = 10

So Y intercept and X intercept of total cost are 10 and 5 respectively.

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