Suppose a firm has a Cobb-Douglas weekly production function Q = F(L, K) = 25L0.5K0.5, where L is the number of workers and K is units of capital. The wage rate is $900 per week, and a unit of capital costs $400 per week. What is the least-cost input combination for producing 675 units of output?
A. L = 18; K = 40.5
B. L = 40.5; K = 18
C. L = 27; K = 60.75
D. L = 27; K = 27
A. L = 18; K = 40.5
You might also like to view...
Which of the following banned most proprietary trading by commercial banks?
A) Consumer financial Protection Bureau B) Regulation Q C) Greenspan rule D) Volcker rule
Important sources of conflict in colonial America include conflicts between all of the following except
(a) Slaves and masters (b) Native Americans and colonists (c) Puritans, Roman Catholics, and Protestants (d) Indentured servants and masters
Which of the following is taxed under the current corporate income tax structure?
a. dividends b. interest payments c. fringe benefits d. worker salaries
Suppose that demand for tablets increases, and simultaneously, the supply of tablets increases. Which of the following would you conclude definitely will occur in the market for tablets?
A) The market clearing price will rise. B) The market clearing price will fall. C) The equilibrium quantity will rise. D) The equilibrium quantity will fall.