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:

Oranges

A type of citrus fruit known for its round shape, orange color, and juicy, sweet flesh, commonly consumed fresh or juiced.

Peaches

Peaches refer to a juicy, soft fruit with a fuzzy skin, or the tree that bears this fruit.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

The cost of foregone alternatives when a decision is made, representing the benefits that could have been gained by choosing the next best alternative.