Scenario 7.3: Use the Production Function: Q = 4L^1/2K^1/2

question 133

Multiple Choice

Scenario 7.3:
Use the production function: Q = 4L^1/2K^1/2.
-Refer to Scenario 7.3. Suppose that the price of labor is $5 and the price of capital is $20. Your firm desires to produce 200 units of output. How much labor will be hired to minimize the costs of producing 200 units of output?

• A) 25
• B) 50
• C) 100
• D) 200
• E) none of the above

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Definitions:

PID Controller

A control loop feedback mechanism widely used in industrial control systems, consisting of Proportional, Integral, and Derivative components to maintain process variables.

Network

A series of stations or devices connected by some type of communications medium.