A Firm Uses Two Inputs, Labor (L) and Capital (K)

Multiple Choice

A firm uses two inputs, labor (L) and capital (K) in the production of umbrellas.It can invest $50,000 in the purchase of the two inputs annually.The firm hires 5 units of capital at $1,000 per unit.If the going annual wage rate is $4,500, calculate the number of workers employed by the firm.(Assume that the firm spends the entire budget on K and L.)

A) 10
B) 5
C) 15
D) 9