Output Is Produced According to Q = 4LK,where L Is

question 12

Multiple Choice

Output is produced according to Q = 4LK,where L is the quantity of labor input and K is the quantity of capital input.If the price of K is $10 and the price of L is $5,then the cost-minimizing combination of K and L capable of producing 32 units of output is:

• A) L = 8 and K = 1.
• B) L = 4 and K = 2.
• C) L = 2 and K = 2.
• D) L = 2 and K = 4.
• E) L = 1 and K = 8.

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Definitions:

Average Investment

The middle amount invested over a period of time, often used in performance measurement or investment appraisal.

Unprofitable Segment

A division or part of a business that consistently operates at a loss, detracting from the overall profitability of the company.

Elimination

The process of removing a component or aspect, often used in the context of accounting to adjust consolidated financial statements.

Related Product Lines

Products that are linked or associated in terms of their usage, customer base, or production requirements, often marketed together.