If Output Is Produced According to Q = 4L

question 9

Multiple Choice

If output is produced according to Q = 4L + 6K, the price of K is $24, and the price of L is $20, then the cost-minimizing combination of K and L capable of producing 72 units of output is

• A) L = 9 and K = 6.
• B) L = 20 and K = 24.
• C) L = 18 and K = 12.
• D) L = 0 and K = 12.
• E) L = 18 and K = 0.

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Definitions:

Derivative Suit

A lawsuit brought by shareholders on behalf of a corporation against third parties or insiders like directors, alleging harm to the company.

Corporate Treasury

The division within a corporation that manages the company's finances, including cash flow, investments, and risk.

Cumulative Voting

A voting system commonly used in corporate elections that allows shareholders to concentrate their votes on a single candidate, as opposed to distributing them among multiple candidates.

Straight Voting

A voting system where shareholders must vote for directors individually, with each shareholder's vote proportional to their shareholding.