Suppose a Firm with a Production Function Given by Q

question 14

Multiple Choice

Suppose a firm with a production function given by Q = 4K^0.25L^0.75 produces 100 units of output. The firm pays a wage of $30 per units and pays a rental rate of capital of $10 per unit. (Note: ) .
The minimum cost of producing 100 units of output is:

• A) $3,000.
• B) $2,250.
• C) $800.
• D) $1,000.