The Production Function Is F(L, M)= 4L^1/2 M^1/2, Where L

question 6

Multiple Choice

the production function is f(L, M) = 4L^1/2 M^1/2, where L is the number of units of labor and M is the number of machines used.If the cost of labor is $9 per unit and the cost of machines is $81 per unit, then the total cost of producing 10 units of output will be

• A)$270.
• B)$90.
• C)$135.
• D)$450.
• E)None of the above.

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Definitions:

Interval Scale

A scale of measurement where the intervals between numbers on the scale are all equal in size.

Standard Deviation

The average deviation of scores from the mean (the square root of the variance).

Variance Data

Variance data measures the spread of a set of numbers, indicating how much individual numbers in a dataset differ from the mean.

Mean Value

The mean value is a measure of central tendency, calculated by adding all the numbers in a set together and dividing by the count of numbers.