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7. = A firm's production function takes the form: Q (L, K) = min {4L, K}, where Q represents output and L and K represent labour and capital, respectively and where w and r give the prices of labour and capital. What would be the expression for the firm's marginal costs? (a) MC = r +· W 4 (b) MC = r + 4w (c) MC = W w+4r + 4r w+4r WK (d) MC = +rk 4 (e) MC = Q(+r)

7. = A firm's production function takes the form: Q (L, K) = min {4L, K}, where Q represents output and L and K represent labour and capital, respectively and where w and r give the prices of labour and capital. What would be the expression for the firm's marginal costs? (a) MC = r +· W 4 (b) MC = r + 4w (c) MC = W w+4r + 4r w+4r WK (d) MC = +rk 4 (e) MC = Q(+r)

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4QR
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7. A firm's production function takes the form: Q (L, K) = min {4L, K}, where Q represents output and L and K represent labour and capital, respectively and where w and r give the prices of labour and capital. What would be the expression for the firm's marginal costs? W 4 (b) MC = r + 4w (a) MC = r + (c) MC = (d) MC = W W+4r WK 4 + 4r W+4r +rk (e) MC = Q Q ( x + r) 4
Transcribed Image Text:7. A firm's production function takes the form: Q (L, K) = min {4L, K}, where Q represents output and L and K represent labour and capital, respectively and where w and r give the prices of labour and capital. What would be the expression for the firm's marginal costs? W 4 (b) MC = r + 4w (a) MC = r + (c) MC = (d) MC = W W+4r WK 4 + 4r W+4r +rk (e) MC = Q Q ( x + r) 4
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