Suppose That in the Short Run, the Firm in Problem

question 25

Multiple Choice

Suppose that in the short run, the firm in Problem 3 which has production function F(L, M) must use 9 machines. If the cost of labor is $5 per unit and the cost of machines is $5 per unit, the short-run total cost of producing 108 units of output is

• A) $900.
• B) $540.
• C) $540
• D) .$540.
• E) $450.

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Definitions:

Knowledge

Information, understanding, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

Attitudes

Mental and emotional entities that embody an individual's degree of like or dislike for an item, which influence their thoughts and behavior toward it.

Reliability

Is the degree to which procedures yield consistent results.

Generalizability

The extent to which findings from a particular study or research can be applied across different settings, populations, or contexts.