If Output Is Produced According to Q = 4L

question 45

Multiple Choice

If output is produced according to Q = 4L + 6K, the price of K is $12, and the price of L is $20, then the cost-minimizing combination of K and L capable of producing 96 units of output is

• A) L = 20 and K = 12.
• B) L = 0 and K = 16.
• C) L = 24 and K = 16.
• D) L = 12 and K = 8.
• E) L = 24 and K = 0.

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Definitions:

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