A Firm's Production Function Is Given By $Q = K ^ { 2 } L$

question 42

Multiple Choice

A firm's production function is given by $Q = K ^ { 2 } L$ . The marginal products of labor and capital are, respectively, $M P _ { L } = K ^ { 2 }$ and $M P _ { X } = 2 K L$ . Further, the wage rate is $w = \$ 10$ and the rental rate of capital is $r = \$ 20$ . What is the most efficient combination of labor and capital $( L , K )$ that also results in a total cost level of exactly $1,200?

• A) (20, 50)
• B) (25, 47.5)
• C) (30, 45)
• D) (40, 40)

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Definitions:

Terrified Of Being Contaminated

An intense fear of being exposed to harmful substances or germs, often observed in individuals with certain anxiety disorders or phobias.

Overwhelming Anxiety

A state of excessive worry and fear that is disproportionate to the situation at hand, leading to significant distress or impairment.

Obsessions

Persistent, unwanted thoughts, images, or urges that cause distress or anxiety.

Compulsions

Repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession, typically aimed at reducing anxiety or preventing a feared event or situation.