Refer to Figure 7.11. If the firm's cost of capital is $30 per unit and its cost of labor is $60 per unit, the isocost line represents a total cost of

A) $2,000.
B) $3,000.
C) $6,000.
D) $8,000.

Cost Of Capital

The expense incurred by an entity to fund its operations and growth, typically comprising interest on debt and dividends on equity.

Cost Of Labor

The total amount paid to employees for their work, including wages, benefits, and any other compensation.

Isocost Line

A graph line representing all combinations of inputs that have the same total cost for a firm.