A Firm Is Currently Producing 100 Widgets Using 4 Units

question 68

Multiple Choice

A firm is currently producing 100 widgets using 4 units of labor and 12 units of capital.The firm's production function exhibits constant returns to scale.How many units of labor and capital are needed to produce 350 widgets?

• A) L = 14; K = 42
• B) L = 15; K = 45
• C) L = 14; K = 44
• D) L = 15; K = 42

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Definitions:

Retained Earnings

The portion of net income that is kept by a company rather than distributed to its shareholders as dividends, often used for reinvestment.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Net Operating Income

The profit generated from a company's normal business operations, excluding non-operating income and expenses.

Materials Quantity Variance

Materials quantity variance is the difference between the actual quantity of materials used in production and the expected quantity, based on standard usage rates.