The Production Function Is Given by F(L) =

question 49

Multiple Choice

The production function is given by F(L) = . Suppose that the cost per unit of labor is $16 and the price of output is $12. How many units of labor will the firm hire?

• A) 54
• B) 13.50
• C) 27
• D) 81
• E) None of the above.

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Definitions:

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Days in Inventory

A financial metric indicating the average number of days a company holds inventory before selling it.

Cost of Goods Sold

Direct expenditures associated with the process of producing goods for sale by a company, which include materials and labor.

Average Inventory

The mean value of inventory over a certain period of time, calculated to assess inventory levels and turnover.