Multiple Choice
A manufacturing firm uses only capital (K) and labour (L) to produce its product, using a production function of Q = 10KL. It pays its workers w = $15 per hour and has a rental cost of capital of r = $5 per hour. If the firm wants to produce 480 units of output, the optimal bundle of inputs is:
A) (3, 16) .
B) (4, 12) .
C) (12, 4)
D) (6, 8) .
Correct Answer:
Verified
Correct Answer:
Verified
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