Solved

A Firm's Production Process Uses Labor LL , and Capital KK , to Produce an Output

Question 70

Multiple Choice

A firm's production process uses labor, LL , and capital, KK , to produce an output, QQ according to the function Q=25KLQ = 25 K L . Let labor be fixed at level L=LL = L . What is the cost minimizing level of capital that the firm must use to produce a target level of output, Q=QQ = Q ?


A) K=Lˉ25QK = \frac { \bar { L } } { 25 Q }
B) K=25LˉQK = 25 \bar { L } Q
C) K=Qˉ25LˉK = \frac { \bar { Q } } { 25 \bar { L } }
D) K=Q22500LˉK = \frac { Q ^ { 2 } } { 2500 \bar { L } }

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions