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Suppose for a Particular Production Function, the Cost-Minimizing Levels of Labor

Question 74

Multiple Choice

Suppose for a particular production function, the cost-minimizing levels of labor and capital are L=Q10rwK=Q10wrL = \frac { Q } { 10 } \sqrt { \frac { r } { w } } K = \frac { Q } { 10 } \sqrt { \frac { w } { r } } . If r=5r = 5 and w=20w = 20 , what is the equation for long-run total cost?


A) 2Q5\frac { 2 Q } { 5 }
B) 2Q10\frac { 2 Q } { 10 }
C) 2Q2 Q
D) 4Q4 Q

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