A Firm's Production Function Is Given By $Q = K L$

question 16

Multiple Choice

A firm's production function is given by $Q = K L$ . The marginal products of labor and capital are, respectively, $M P _ { L } = K$ and $M P _ { K } = L$ . The wage rate of labor is $w = \$ 10$ and the rental rate of capital is $r = \$ 20$ . The firm wants to produce 1,800 units of output in the most efficient way possible. How much does the firm spend?

• A)$2,000
• B)$1,300
• C)$1,200
• D)$1,100

---

Definitions:

Removal

The act of transferring a case from one court to another, typically from a state court to a federal court in the legal context.

Nerve Center

The core location or facility from which the control and coordination of activities are directed, often used in the context of business operations or network operations.

Subject-Matter Jurisdiction

The power of a court to adjudicate cases of a certain nature or those pertaining to a specified subject area.

Final Judgment

A court's last decision or ruling in a case, which resolves the dispute and is enforceable by law.