Solved

A Firm's Production Function Is Given by Q = KL

Question 3

Multiple Choice

A firm's production function is given by Q = KL.The marginal products of labor and capital are,respectively,MPL = K and MPK = L.The wage rate of labor is w = $10 and the rental rate of capital is r = $20.The firm wants to produce 1,800 units of output.What is the most efficient combination of labor and capital A firm's production function is given by Q = KL.The marginal products of labor and capital are,respectively,MP<sub>L</sub> = K and MP<sub>K</sub> = L.The wage rate of labor is w = $10 and the rental rate of capital is r = $20.The firm wants to produce 1,800 units of output.What is the most efficient combination of labor and capital ? A) (10, 20) B) (20, 90) C) (60, 30) D) (90, 20) ?


A) (10, 20)
B) (20, 90)
C) (60, 30)
D) (90, 20)

Correct Answer:

verifed

Verified

Related Questions

Q9: A firm's production function is given by

Q10: To derive the equation for an isocost

Q13: A firm's production process uses labor, L,

Q15: The "equal bang per buck" condition refers

Q18: The short-run is:<br>A)a time period in which

Q19: Identify the truthfulness of the following statements.

Q28: A firm's production function is given by

Q29: Let a firm use labor (L) and

Q31: Which of the following statements correctly characterizes

Q54: You decide to purchase a car for