The Production Function Is Given by F(L)=6L^2/3

question 7

Multiple Choice

the production function is given by F(L) =6L^2/3.Suppose that the cost per unit of labor is $16 and the price of output is 16, how many units of labor will the firm hire?

• A)32
• B)64
• C)192
• D)128
• E)None of the above.

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Definitions:

Measuring Product Costs

Measuring product costs involves calculating the total expenses incurred in the production of goods, including direct materials, direct labor, and manufacturing overhead.

Work In Process Inventory

Items in the production process that are not yet finished products, including material, labor, and overhead costs applied to them.

Actual Manufacturing Overhead Costs

The incurred expenses related to producing goods that are not directly tied to the product such as utilities, rent, and maintenance.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs for a period exceed the actual overhead costs incurred.