Solved

Suppose That a Firm's Production Function of Output Q Is

Question 22

Multiple Choice

Suppose that a firm's production function of output Q is a function of only two inputs,labor (L) and capital (K) and can be written Q = 25LK with marginal products MPL = 25K and MPK = 25L.Letting the wage rate for labor be w and the rental rate of capital be r,the equation for the firm's demand for labor would be:


A) Suppose that a firm's production function of output Q is a function of only two inputs,labor (L) and capital (K) and can be written Q = 25LK with marginal products MP<sub>L</sub> = 25K and MP<sub>K</sub> = 25L.Letting the wage rate for labor be w and the rental rate of capital be r,the equation for the firm's demand for labor would be: A) B) C) D)
B) Suppose that a firm's production function of output Q is a function of only two inputs,labor (L) and capital (K) and can be written Q = 25LK with marginal products MP<sub>L</sub> = 25K and MP<sub>K</sub> = 25L.Letting the wage rate for labor be w and the rental rate of capital be r,the equation for the firm's demand for labor would be: A) B) C) D)
C) Suppose that a firm's production function of output Q is a function of only two inputs,labor (L) and capital (K) and can be written Q = 25LK with marginal products MP<sub>L</sub> = 25K and MP<sub>K</sub> = 25L.Letting the wage rate for labor be w and the rental rate of capital be r,the equation for the firm's demand for labor would be: A) B) C) D)
D) Suppose that a firm's production function of output Q is a function of only two inputs,labor (L) and capital (K) and can be written Q = 25LK with marginal products MP<sub>L</sub> = 25K and MP<sub>K</sub> = 25L.Letting the wage rate for labor be w and the rental rate of capital be r,the equation for the firm's demand for labor would be: A) B) C) D)

Correct Answer:

verifed

Verified

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

Related Questions

Q10: An input demand curve represents:<br>A)how the cost-minimizing

Q24: A difference between the short run and

Q32: Identify the truthfulness of the following statements.

Q35: A curve that shows how the firm's

Q40: A high elasticity of substitution between capital

Q43: The cost-minimization problem of the firm is

Q52: Economic costs:<br>A)are the same as accounting costs.<br>B)are

Q61: The cost-minimization problem of the firm is

Q69: The expansion path graphs:<br>A)the combinations of capital

Q84: In order to solve graphically for an