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:

Employee Benefits

Compensation given to employees in addition to regular salaries, such as health insurance, retirement plans, and paid vacation.

Annual Perks

Benefits or privileges afforded to employees on a yearly basis, in addition to their regular salary or wages.

Organization's Culture

The shared values, beliefs, and norms that influence the behavior and practices of members within an organization.

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Accomplishments or successes achieved through effort, skill, or courage.