A Firm's Production Function Is Given by Q = KL $(L, K)$

question 61

Multiple Choice

A firm's production function is given by Q = KL. The marginal products of labor and capital are, respectively, MP_L = K and MP_K = L. The wage rate of labor is w = $10 and the rental rate of capital is r = $20. The firm wants to produce 1,800 units of output. What is the most efficient combination of labor and capital $(L, K)$ ?

• A) (10, 20)
• B) (20, 90)
• C) (60, 30)
• D) (90, 20)

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Definitions:

Presynaptic Terminal

The part of a neuron that releases neurotransmitters into the synaptic cleft, initiating a response in another neuron.

Intracellular Mediator

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Membrane-bound Receptor Model

A concept describing receptors located on the cell membrane that bind to specific molecules outside the cell, initiating a cellular response.

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