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

question 53

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 spends exactly $\$ 1000$ in the most efficient way possible. How much output can the firm produce?

• A)450
• B)800
• C)1000
• D)1250

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Definitions:

Active Management

Involves hands-on involvement by managers in the day-to-day activities and decision-making processes of an organization.

Exception

An instance or occurrence that does not follow the established rule, norm, or expectation, often requiring special handling or consideration.

Corrective Action

Measures taken to rectify faults or deviations identified during quality assessment or performance review processes.

Transactional Leadership

Involves leader–follower exchanges necessary for achieving routine performance agreed upon between leaders and followers.