A Firm's Production Function Is Given by

question 32

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 wants to produce 27,000 units of output in the most efficient way possible.How much does the firm spend?

• A) $600
• B) $900
• C) $1,500
• D) $2,100

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Definitions:

Neoliberalism

A political and economic philosophy advocating for free market principles, reduced government regulation, and a minimization of the state's role in society.

Individual Liberty

The freedom of individuals to act as they choose, as long as they do not infringe on the equal rights of others, often considered a foundational aspect of democratic societies.

Formal Relations

Social connections and interactions that are governed by officially established rules and structures.

Informal Relations

Interactions and connections between individuals or groups that are not governed by formal rules, structures, or procedures, often based on personal or community ties.