If Output Is Produced According to Q = 4L

question 54

Multiple Choice

If output is produced according to Q = 4L + 6K, the price of K is $12, and the price of L is $20, then the cost-minimizing combination of K and L capable of producing 96 units of output is

• A)L = 20 and K = 12.
• B)L = 0 and K = 16.
• C)L= 24 and K = 16.
• D)L =12 and K = 8.
• E)L = 24 and K = 0.

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Definitions:

Withholding Base

This term represents the amount of an individual's income that is subject to tax withholding by employers, determining the portion of income that will have taxes withheld in advance.

Directly Tipped Employee

An employee who receives tips directly from customers for services rendered, often subject to different tax reporting requirements.

Form 8027

A tax form used by employers who operate large food or beverage establishments to report tips received by employees.

FICA Tax

Federal Insurance Contributions Act tax, a payroll tax deducted from employees' wages for Social Security and Medicare benefits.