Suppose the Production Function Is Given by Q = 2K

question 37

Multiple Choice

Suppose the production function is given by Q = 2K + 5L.What is the marginal product of labor when 15 units of capital and 10 units of labor are employed?

• A) 2
• B) 5
• C) 25
• D) 50

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Definitions:

Conversion Costs

The sum of labor and overhead expenses incurred in the process of converting raw materials into finished goods.

Work In Process

Goods and materials that are partially completed in the manufacturing process, representing an inventory category on the balance sheet.

Inventory

Raw materials, work-in-progress, and finished goods that are considered part of a business's assets that are ready or will be ready for sale.

Non-Value-Added Costs

Expenses that do not contribute to the value or appeal of a product or service from the perspective of the customer.