A Firm Has a Production Function of Q = KL

question 33

Multiple Choice

A firm has a production function of Q = KL + L, where MP_L = K + 1 and MP_K = L. The
Wage rate (W) is $100 per worker and the rental (R) is $100 per unit of capital. In the short run, capital (K) is fixed at 4 and the firm produces 100 units of output. The firm's short-run total cost of producing 100 units of output is $____.

• A) 3,000
• B) 2,400
• C) 1,900
• D) 1,500

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Definitions:

High Risk

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Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart rhythm problems (arrhythmias), and many others.

ECG Stress Test

A diagnostic test examining how the heart works under stress, typically involving exercise or medication.

Ventricular Action

The activity or contractions of the ventricles, the two lower chambers of the heart, responsible for pumping blood to the body and lungs.