Suppose a firm has a production function given by Q = 2(2L)0.5K0.5. If the rental rate of capital is $100 per unit, the wage rate is $1,400 per week and the firm initially has 25 units of capital, what is the firm's short-run cost function?
A. C(Q) = 2,500 + 7Q2
B. C(L) = 2,500 + 1,400L
C. C(Q) = 0.25 + 7Q2
D. C(L) = 0.25 + 1,400L
A. C(Q) = 2,500 + 7Q2
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