Touchie MacFeelie's Production Function Is 0

question 19

Multiple Choice

Touchie MacFeelie's production function is 0.1J^1/2 L^3/4, where J is the number of old jokes used and L is the number of hours of cartoonists' labor.Touchie is stuck with 400 old jokes for which he paid 2 dollars each.If the wage rate for cartoonists is 5 dollars, then the total cost of producing 54 comics books is

• A)1,205 dollars.
• B)1,807.50 dollars.
• C)602.50 dollars.
• D)1,259 dollars.
• E)301.25 dollars.

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Definitions:

Sales

The activities involved in selling goods or services in return for money or other compensation.

Trend Percentages

An analytical tool used to examine changes in financial statements items over various periods, expressing each item as a percentage of its value in the base year.

Base Period

A specific time period used as a standard of comparison for financial or economic data.

Analysis Period

The specific span of time for which financial or operational performance is examined and analyzed.