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Unformatted text preview: ). The correct answer is (H).
Total cost is made up of the price of labour times the amount of labour plus the price of capital times
the amount of capital. Together with the calculated value of q, that can give us an average cost of $9.
The correct answer is (F).
The average variable cost is $6. The correct answer is (E).
The marginal cost is the ratio of the price of labour to its marginal product. MC is, therefore, $12.
The correct answer is (H)....
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This note was uploaded on 06/11/2011 for the course ECMA 04 taught by Professor Cleverland during the Fall '09 term at University of Toronto- Toronto.
- Fall '09