Suppose That in the Short Run, the Firm Which Has

question 19

Multiple Choice

Suppose that in the short run, the firm which has production function F(L, M) =4L^1/2M^1/2 must use 9 machines.If the cost of labor is $5 per unit and the cost of machines is $5 per unit, the short-run total cost of producing 108 units of output is

• A)$900
• B)$540
• C)$540.
• D)$450