A Firm with a Production Function Q = KL (Where

question 61

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 four units of labor is ____.

• A) 32
• B) 18
• C) 8
• D) 2

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Definitions:

Clones

Clones are organisms, cells, or molecules that are genetically identical to their parent or original entity.

Specific Antigen

A unique molecule or part of a molecule that triggers an immune response, being recognized by specific antibodies.

Immunoglobulin

Any of a class of proteins present in the serum and cells of the immune system, which function as antibodies.

Plasma Membrane

The lipid bilayer membrane surrounding a cell that controls the passage of substances in and out, maintaining the cell's internal environment.