A Firm's Production Function Is Given by

question 29

Multiple Choice

A firm's production function is given by .The marginal products of labor and capital are,respectively, and .Further,the wage rate is and the rental rate of capital is .What is the most efficient combination of labor and capital that also results in a total cost level of exactly $1,200?

• A) (20, 50)
• B) (25, 47.5)
• C) (30, 45)
• D) (40, 40)

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Definitions:

Distributed

Refers to a system or process that is spread out across multiple locations or among various entities.

Existential Import

The concept that a statement implies the existence of the subject it mentions.

Invalid Syllogism

An invalid syllogism is a form of deductive reasoning where the conclusion does not logically follow from its premises, thus making the argument logically incorrect.

Rules Of Validity

The principles and criteria used to assess the logical soundness of arguments and syllogisms.