Suppose for a Particular Production Function, the Cost-Minimizing Level of Labor

question 11

Multiple Choice

Suppose for a particular production function, the cost-minimizing level of labor is $L = 2 Q$ and the cost-minimizing level of capital is $K = 5 Q$ . If $w = 5$ and $r = 2$ , the long-run total cost curve is:

• A) \(T C = 7 Q\)
• B) \(T C = 7\)
• C) \(T C = 20 Q\)
• D) \(T C = 20\)

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