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

question 12

Multiple Choice

the production function is given by F(L) =6L^2/3.Suppose that the cost per unit of labor is $12 and the price of output is 9, how many units of labor will the firm hire?

• A)54
• B)81
• C)13.50
• D)27
• E)None of the above.

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Definitions:

Operating Results

The financial outcomes achieved from a company's core business operations.

Variable Factory Overhead

Costs of production that fluctuate with the level of output, including utilities and materials not directly tied to a product's manufacture.

Controllable Variance

The difference between actual and budgeted figures that is within the control of a manager, used for assessing performance.

Controllable Variance

The difference between actual costs and budgeted costs that management has the power to influence or control through decisions and actions.