A Firm with a Production Function Q = KL (Where

question 97

Multiple Choice

A firm with a production function Q = KL (where K is units of capital and L is units of labor) has an expansion path that is given by K = 2L. The wage rate (W) is $20 and the rental on capital is $10. Assuming that the firm is using the optimal mix of inputs for any given output level, the quantity of output using three units of labor is ____.

• A) 32
• B) 18
• C) 8
• D) 2

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Definitions:

Field of OB

The Field of OB, or Organizational Behavior, studies how individual behavior and group dynamics affect decision-making, performance, and culture within organizations.

Organizational Behavior Model

A framework used to understand and analyze how individuals behave within organizations, considering factors like structure, culture, and dynamics.

Levels of Analysis

Various perspectives from which social research can consider subjects, ranging from individual to societal scales.

Organizational Behavior

The study of how individuals and groups act within the contexts of organizations, and how these behaviors affect the performance of the organization.