A Firm's Production Process Uses Labor $L$ , and Capital $K$ , and Materials

question 79

Multiple Choice

A firm's production process uses labor, $L$ , and capital, $K$ , and materials, $M$ , to produce an output, $Q$ according to the function $Q = K L M$ , where the marginal products of the three inputs are $M P _ { L }$ $= K M , M P _ { K } = L M$ , and $M P _ { M } = K L$ . The wage rate for labor is $w = 2$ , the rental rate of capital is $r$ $= 1$ , and the cost of materials is $m = 4$ per unit. Let materials input be fixed now at $M = 2$ . What is the cost minimizing level of capital that the firm must use to produce a target level of output, $Q = 1600$ ?

• A) \(K = 5\)
• B) \(K = 10\)
• C) \(K = 20\)
• D) \(K = 40\)

Explain the concept of prima facie duties and their importance in moral decision-making.

Differentiate between types of rights and their ethical implications.

Assess the significance of moral arguments in ethical discussions.

Comprehend the importance of empathy, sympathy, and other moral sentiments in ethical behavior.

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