If Output Is Produced According to Q = 4LK, the Price

question 27

Multiple Choice

If output is produced according to Q = 4LK, the price of K is $10, and the price of L is $5, then the cost minimizing combination of K and L capable of producing 2 units of output is

• A)L = 0.35 and K = 0.35.
• B)L = 1 and K. = 0.50.
• C)L = 0.50 and K = 1.
• D)L = 1 and K = 1.
• E)L = 1 and K = 0.50.

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Definitions:

Mainland Colonies

Refers to the 13 British colonies located along the Atlantic coast of North America that eventually declared independence in 1776 to form the United States.

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A period marking New York's development from a small colonial outpost to a significant urban center in the 1700s.

Hudson Valley

A geographical area in New York State, known for its history, natural beauty, and as a significant site during the American Revolutionary War.

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Individuals who are forced into servitude against their will, deprived of personal freedom, and compelled to work without rightful compensation.