Bina's Umbrellas Has a Production Function Given by Q =

Multiple Choice

Bina's Umbrellas has a production function given by Q = 10K^0.5L^0.5, where MP_L = 5K^0.5/L^0.5 and MP_K = 5L^0.5/K^0.5. Bina is using 9 units of capital (K) in the short run. The wage (W) is $80 per day and the rental per unit of capital (R) is $5 per day. What is Bina's total cost of producing 60 umbrellas?

A) $445
B) $365
C) $108
D) $276