The Production Function Is F (L, M)=4L^1/2M^1/2, Where L Is

question 48

Multiple Choice

The production function is f (L, M) =4L^1/2M^1/2, where L is the number of units of labor and M is the number of machines.If the amounts of both factors can be varied and if the cost of labor is $64 per unit and the cost of using machines is $1 per machine, then the total cost of producing 20 units of output is

• A)$80.
• B)$650.
• C)$20.
• D)$320.
• E)$40.

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Definitions:

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including expenses, purchases, and other payouts.

Selling and Administrative Expense Budget

A detailed plan that estimates the expected selling and administrative expenses for a company over a specific period, helping in the management and planning of overhead costs.

Variable Expense

A cost that varies with the level of output or sales, such as raw materials or sales commissions.

Fixed Selling and Administrative Expense

Costs that do not change with the level of production or sales, such as salaries of executive personnel and advertising expenses.