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Suppose a Firm with a Production Function Given by Q

Question 83

Multiple Choice

Suppose a firm with a production function given by Q = 4K0.25L0.75 produces 100 units of output. The firm pays a wage of $30 per units and pays a rental rate of capital of $10 per unit.
(Note: Suppose a firm with a production function given by Q = 4K<sup>0.25</sup>L<sup>0.75</sup> produces 100 units of output. The firm pays a wage of $30 per units and pays a rental rate of capital of $10 per unit. (Note:   )  The minimum cost of producing 100 units of output is: A)  $3,000. B)  $2,250. C)  $800. D)  $1,000.
)
The minimum cost of producing 100 units of output is:


A) $3,000.
B) $2,250.
C) $800.
D) $1,000.

Correct Answer:

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