Suppose the Production Function Is Given by Q = 2K

question 87

Multiple Choice

Suppose the production function is given by Q = 2K + L.If w = $4 and r = $4,how many units of K and L will be utilized in the production process?

• A) All K and no L.
• B) All L and no K.
• C) Equal amounts of K and L.
• D) A combination of K and L not represented above.

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