Suppose That a Firm's Production Function Is Given by Q

question 42

Multiple Choice

Suppose that a firm's production function is given by Q = 1.23KL (MP_K = 1.23L and MP_L = 1.23K) , where Q is quantity of output, K is units of capital, and L is units of labor. The price per unit of labor and capital are $30 and $20, respectively. The minimum cost of producing 600 units of output is $____.

• A) 2,160
• B) 1,080
• C) 960
• D) 580

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Definitions:

Air-fluidized

A technology used in medical beds where warm air is passed through very small beads, creating a fluid-like surface which reduces pressure on the skin, used for patients with skin integrity issues.

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Negative-pressure Wound Therapy

A therapeutic technique using a vacuum dressing to promote healing in acute or chronic wounds, and enhance healing of second and third degree burns.

Moist-to-dry Dressing

A wound care technique involving the application of a moist dressing that is allowed to dry before removal, aiding in the removal of dead tissue.