Suppose That in the Short Run, the Firm in Problem

question 23

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 $6 per unit, the short-run total cost of producing 84 units of output is

• A) $598.
• B) $420.
• C) $462.
• D) $504.
• E) $299.

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Definitions:

Concrete-Operational

A stage in Piaget's theory of cognitive development, typically occurring between ages 7 and 11, where children start thinking logically about concrete events.

Logical

Pertaining to a mode of reasoning or argumentation that is consistent, valid, and based on facts or established rules of reasoning.

Conservation

A cognitive ability, identified by Piaget, that allows a person to understand that changing the form of a substance or object does not change its amount, overall volume, or mass.

Animism

The belief that objects, places, and creatures all possess a distinct spiritual essence.