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

question 74

Multiple Choice

Suppose for a particular production function, the cost-minimizing levels of labor and capital are $L = \frac { Q } { 10 } \sqrt { \frac { r } { w } } K = \frac { Q } { 10 } \sqrt { \frac { w } { r } }$ . If $r = 5$ and $w = 20$ , what is the equation for long-run total cost?

• A) \(\frac { 2 Q } { 5 }\)
• B) \(\frac { 2 Q } { 10 }\)
• C) \(2 Q\)
• D) \(4 Q\)

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