If Output Is Produced According to Q = 4LK, the Price

question 7

Multiple Choice

If output is produced according to Q = 4LK, the price of K is $10, and the price of L is $5, then the cost minimizing combination of K and L capable of producing 2 units of output is

• A) L = 0.35 and K = 0.35.
• B) L = 1 and K = 0.50.
• C) L = 0.50 and K = 1.
• D) L = 1 and K = 1.
• E) L = 1 and K = 0.50

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Definitions:

Infant Mortality

The rate at which infants under one year old die, often used as an indicator of a country's health and socioeconomic status.

Per Capita Income

The average income earned per person in a specific area or country.

World's Income

The total amount of economic output or earnings generated globally within a specific time period.

Productive Resources

The inputs used in the production of goods and services, typically categorized into land, labor, and capital.