Scenario 7.2: the Production Function for Earthquake Detectors (Q) Is Given as Given

question 74

Multiple Choice

Scenario 7.2:
The production function for earthquake detectors (Q) is given as follows:
Q = 4K^1/2L^1/2
where K is the amount of capital employed and L is the amount of labor employed. The price of capital, P_K, is $18 and the price of labor, P_L, is $2.
-Refer to Scenario 7.2. Suppose that you receive an order for 60 earthquake detectors. How much labor will you use to minimize the cost of 60 earthquake detectors?

• A) 1
• B) 5
• C) 10
• D) 45
• E) none of the above

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Definitions:

International Labor

Involves the labor practices, standards, and workforce dynamics that span across national borders, often influenced by global economic and political relations.

Labor Relations

The study and practice of managing the relationship between employers and their workforce, including the negotiation of labor contracts and resolving disputes.

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