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

question 173

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. What is the marginal cost of the 60th earthquake detector?

• A) 0
• B) 5 ^1/2
• C) 3
• D) 5
• E) none of the above