In the Short Run, a Firm Which Has Production Function

question 51

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 $4 per unit, the short-run total cost of producing 48 units of output is

• A) $192.
• B) $196.
• C) $198.
• D) $320.
• E) $160.

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Definitions:

Dissolution

The process of legally ending the existence of a corporation, partnership, or other legal entity.

Winding-Up Process

A formal procedure in which a company's assets are liquidated and liabilities are paid off before the company is dissolved.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. The obligated party is typically in a position of trust, such as a financial advisor or trustee.

Rightful Dissolution

The legally justified process of formally ending the existence of an entity, such as a corporation or partnership.