In the short run, a firm which has production function f(L, M) = 4L"²M² must use 4 machines. If the cost of labor is £4 per unit and the cost of machines is £4 per unit, the short- run total cost of producing 48 units of output is A. £192. В. £196. С. £198. D. £320. Е. £160.

In the short run, a firm which has production function f(L, M) = 4L"²M² must use 4 machines. If the cost of labor is £4 per unit and the cost of machines is £4 per unit, the short- run total cost of producing 48 units of output is A. £192. В. £196. С. £198. D. £320. Е. £160.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.3P

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Question

In the short run, a firm which has production function f(L, M) = 4L"²M"? must use 4
machines. If the cost of labor is £4 per unit and the cost of machines is £4 per unit, the short-
run total cost of producing 48 units of output is
А.
£192.
В.
£196.
С.
£198.
D.
£320.
Е.
£160.

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