Touchie MacFeelie's Production Function Is , Where J Is

question 7

Multiple Choice

Touchie MacFeelie's production function is , where J is the number of old jokes used and L is the number of hours of cartoonists' labor. Touchie is stuck with 400 old jokes for which he paid 4 dollars each. If the wage rate for cartoonists is 3 dollars, then the total cost of producing 128 comics books is

• A) 2,368 dollars.
• B) 1,184 dollars.
• C) 3,552 dollars.
• D) 2,496 dollars.
• E) 592 dollars.

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Definitions:

Tax Burden

The total amount of taxes that individuals or businesses must pay to the government.

Inelastic Demand

A market condition where the demand for a product does not change significantly with a change in its price.

Elastic Supply

A scenario in which the amount of a product available for sale markedly changes in response to its price adjustments.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits to retirees, disabled workers, and survivors of deceased workers.