In the Short Run, a Firm Which Has Production Function

question 14

Multiple Choice

In the short run, a firm which has production function f (L, M) = 4 must use 4 machines. If the cost of labor is $4 per unit and the cost of machines is $10 per unit, the short-run total cost of producing 72 units of output is

• A) $504.
• B) $288.
• C) $720.
• D) $728.
• E) $364.

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Definitions:

Supervisory Support

The guidance, assistance, and resources provided by supervisors to help employees achieve job-related goals.

Contingency Theory

A management theory that suggests the most appropriate form of organizational structure or managerial action depends on the specific situational variables.

Weber's Concept

Theories and principles developed by sociologist Max Weber, including authority types and the characteristics of bureaucracy.

Bureaucracy

A system of administration characterized by strict policies, procedures, and hierarchy, often within large organizations or governments.