A Firm's Production Function Is Given by

question 39

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 .Suppose that the firm spends exactly $1200 in the most efficient way possible.How much output can the firm produce?

• A) 50,000
• B) 56,406.25
• C) 60,750
• D) 64,000

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Definitions:

Cash Disbursements

Outflows of cash for expenses, payments to creditors, or investments, usually tracked in a cash disbursements journal in accounting.

Payments

Payments refer to the transfer of money from one party to another, often as compensation for goods or services.

Petty Cash Fund

A small amount of cash kept on hand within a business for minor and immediate expenses.

Internal Control

Initiatives and standards implemented by a firm to assure the correctness of financial and accountancy details, encourage integrity, and obstruct fraudulent activities.