A Firm Has the Production Function Q = KL, Where

question 10

Multiple Choice

A firm has the production function Q = KL, where K is the amount of capital and L is the amount of labor it uses as inputs. The cost per unit of capital is a rental fee r and the cost per unit of labor is a wage w. The conditional labor demand function L(Q, w, r) is

• A) Qwr.
• B) the square root of Qw/r.
• C) Qw/r.
• D) the square root of Qw/r
• E) Qw/r

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