Question

QUESTIONS Figure 73 Units of capital 20- 144 Expansion path 12 10- Q-300 11 X =220 1X0-100 V = 600 C = 1,200 C = 1,800 TTTTTTTTTTTTTTTTT 2 4 6 8 10 12 14 16 18 20 Units of labor Reference: Rat 7-3 on the following graph. (Figure 7.3) The firm's total cost is given by curve Total cost ($) 2,000 1,8007 1,600 1,4007 1,200 II - - - - 1,000+ 800 6007 4007 200 - -- - TTTTTTTTTTTTTTTTIIIIII 0 50 100 150 200 250 300 350 Quantity of output OOO

Answer 1

Ans: Curve B

Explanation:

The three output and total cost combinations are: (100 ; $600), (220 ; $1200), and (300 ; $1800).

In the below diagram, it is seen that the total cost curve B shows these three combinations.

Thus, option [C] is correct answer.