In Problem 3, the Production Function Is F(L, M)

question 11

Multiple Choice

In Problem 3, the production function is f(L, M) , where L is the number of units of labor and M is the number of machines used. If the cost of labor is $100 per unit and the cost of machines is $16 per unit, then the total cost of producing 7 units of output will be

• A) $140.
• B) $406.
• C) $112.
• D) $280.
• E) None of the above.

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Definitions:

Boundaries

Limits set on behaviors or interactions, often to maintain personal well-being and define personal space.

Risky Shift

A phenomenon observed in group decision-making where collective decisions tend to be more extreme compared to individual choices.

Groups Decision

The outcome of a deliberation process in which all members of a group contribute to making a collective choice or judgment.

Individuals Decision

The process by which a person comes to a conclusion and chooses a course of action from among various alternatives.