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

question 22

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 $25 per unit and the cost of machines is $64 per unit, then the total cost of producing 6 units of output will be

• A) $240.
• B) $150.
• C) $267.
• D) $120.
• E) None of the above.

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Definitions:

Unconscionable

Actions or terms that are excessively unfair or oppressive and not guided by conscience.

Competing In Business

The act of engaging in efforts to win over customers, achieve superior market position, or attain higher sales in a particular marketplace against other businesses.

Illegal Contract

An agreement that is against the law or public policy and therefore unenforceable in a court of law.

Performance Rendered

The execution or completion of a task or duty as agreed in a contract or agreement.