Suppose That in the Short Run, the Firm in Problem

question 10

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 $7 per unit and the cost of machines is $9 per unit, the short-run total cost of producing 96 units of output is

• A) $1,058.
• B) $672.
• C) $864.
• D) $768.
• E) $529.

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Definitions:

Suffrage

The right to vote in political elections.

Direct Democracy

A form of government in which citizens vote on laws and policies directly, rather than through elected representatives.

Citizens

Members of a particular country or city, entitled to its rights and subject to its laws.

Policies

Strategies or courses of action adopted and pursued by an organization, government, or individual.