Widgets Are Produced According to the Production Function: F(K,L)= 2K+L

question 17

Multiple Choice

Widgets are produced according to the production function: F(K,L) = 2K+L. If K = 10 how much L is needed to produce 100 widgets?

• A)70
• B)60
• C)80
• D)40

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Definitions:

Common Stock

A type of ownership in a corporation, typically with voting rights and participation in dividends.

Retained Earnings

The portion of a company's profits that is kept or retained rather than distributed to shareholders or used for investment.

Other Revenues and Gains

Accounts that record income from activities that are not part of a business's core operations.

Unrealized Gain

The potential profit on an investment that has not been sold, reflecting an increase in value on paper but not realized as cash.