If Q Represents a Firm's Level of Output,W Represents the Wage

question 5

Multiple Choice

If Q represents a firm's level of output,W represents the wage paid to labor (L) and R is the cost of capital (K) ,then which of the following represents the firm's cost function?

• A) C(Q) = FC + VC(Q)
• B) C(Q) = FC(Q) + VC(Q)
• C) C(Q) = WL + RK
• D) C(Q) = (W + R)Q

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