A Firm Has the Production Function Q = KL, Where

question 33

Multiple Choice

A firm has the production function Q = KL, where K is the amount of capital and L is the amount of labor it uses as inputs.The cost per unit of capital is a rental fee r and the cost per unit of labor is a wage w.The conditional labor demand function L(Q, w, r) is

• A)Qwr.
• B)the square root of Qr/w.
• C)Qw/r.
• D)the square root of Qw/r.
• E)Q/wr.

---

Definitions:

Design Thinking

A creative problem-solving approach that focuses on understanding user needs and challenges to develop innovative solutions.

Organizations

Groups or institutions with a common interest or activity, structured systematically to achieve specific goals.

Design Thinking

A problem-solving approach that involves empathy with users, creativity in the generation of insights and solutions, and rationality in analyzing and fitting solutions to the context.

Desirability

The attractiveness or appeal of a product, service, or idea to potential customers or users, influencing their willingness to purchase or adopt it.