A Firm Produces Output According to the Production Function,q =

question 68

Multiple Choice

A firm produces output according to the production function,q = L^4/3K^1/2 and faces input prices equal to w = $20 and r = $80.What is the minimum cost of producing 1140 units of output?

• A) Cost = $780
• B) Cost = $694
• C) Cost = $2,071
• D) Not enough information is given to answer this problem.

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Definitions:

Expense Recognition

The accounting principle that matches incurred expenses to the revenue they generate, recognizing expenses in the same period as the related revenues.

Revenue Recognition Principle

The accounting principle that revenue should be recorded when earned, regardless of when payment is received.

Services Performed

The actions or tasks provided by a business to its customers for a fee.

Salaries And Wages Payable

Liabilities owed to employees for work performed that are unpaid at the end of a reporting period.