(Solved): 1: Suppose you have capital on the vertical axis and labor on the horizontal axis. The slope of the ...

1: Suppose you have capital on the vertical axis and labor on the horizontal axis. The slope of the isoquant measures: a. the marginal rate of substitution. b. the marginal product of labor. c. the marginal product of capital. d. the marginal rate of technical substitution of capital for labor. 2: Alina has her own law practice. She pays $\$1,500$ in rent for her offices per month. She also pays $\$4,000$ a month in salaries to secretaries and staff, utility bills worth $\$500$ a month, and miscellaneous bills worth $\$1,000$ a month. She recently received an offer to work for a legal firm for $\$8,000$ a month, but she declined that in order to run her own practice. Which of the following most completely describes the cost Alina incurs per month to run her own practice? a. $\$15,000$ b. $\$7,000$ c. $\$5,500$ d. $\$6,000$ 3: If fixed costs are $\$10,000$ and variable costs are constant at $\$1.00$ per unit over the relevant range of output, what will the average total cost be when 10,000 units are produced? a. $\$0.20$ b. $\$2.00$ c. $\$5.00$ d. $\$1.00$ 4: Which of the following statements is not true? a. Average variable cost falls, reaches a minimum and begins to rise. b. Average total cost falls, reaches a minimum and begins to rise. c. Average fixed cost falls, reaches a minimum, and begins to rise. d. Marginal cost falls, reaches a minimum and begins to rise.