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Scenario 7.2: the Production Function for Earthquake Detectors (Q) Is Given as Given

Question 173

Multiple Choice

Scenario 7.2:
The production function for earthquake detectors (Q) is given as follows:
Q = 4K1/2L1/2
where K is the amount of capital employed and L is the amount of labor employed. The price of capital, PK, is $18 and the price of labor, PL, is $2.
-Refer to Scenario 7.2. What is the marginal cost of the 60th earthquake detector?


A) 0
B) 5 1/2
C) 3
D) 5
E) none of the above

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