Suppose the Production Function Is Given by Q = 2K

question 87

Multiple Choice

Suppose the production function is given by Q = 2K + L.If w = $4 and r = $4,how many units of K and L will be utilized in the production process?

• A) All K and no L.
• B) All L and no K.
• C) Equal amounts of K and L.
• D) A combination of K and L not represented above.

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Definitions:

Actual Authority

The power that an agent or employee has been deliberately given by a principal or employer to conduct specific acts or transactions.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money or property.

Subagent

An individual or entity that is appointed by an agent to perform tasks or services on behalf of the principal, under the supervision of the original agent.

Apparent Authority

A form of authority that a third party reasonably believes an agent has, based on the principal's behavior or words, which can bind the principal to agreements made by the agent.