A Firm's Production Function Is Given by Q = Min{M

question 27

Multiple Choice

A firm's production function is given by q = min{M, L^1/2}, where M is the number of machines and L is the amount of labor that it uses.The price of labor is $1and the price of machines is $4 per unit.The firm's long-run marginal cost curve is

• A)upward sloping and gets flatter as Q increases.
• B)a straight line with slope 2.
• C)a straight line with slope 1.
• D)upward sloping and gets steeper as Q increases.
• E)a straight line with slope 4.

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Definitions:

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