If Output Is Produced According to Q = 4LK, the Price

question 28

Multiple Choice

If output is produced according to Q = 4LK, the price of K is $10, and the price of L is $40, then the cost minimizing cost minimizing combination of K and L capable of producing 64 units of output is

• A)L = 16 and K = 1.
• B)L = 2 and K = 8.
• C)L = 2 and K = 2.
• D)L = 32 and K = 32.
• E)L= 1 and K = 16.

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