Suppose a firm has a production function Q = 10/KL %3D so that 5/K MPL VI 5VL VK MPK The firm uses 9 units of capital in the short run: K = 9 The wage is $80 and the rental rate of capital is $5. What is the cost of producing 60 units of output? $445 $108 $365 $276
Suppose a firm has a production function Q = 10/KL %3D so that 5/K MPL VI 5VL VK MPK The firm uses 9 units of capital in the short run: K = 9 The wage is $80 and the rental rate of capital is $5. What is the cost of producing 60 units of output? $445 $108 $365 $276
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 21PAE
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