Output is produced according to Q = 4LK, where Listhe quantity of labor input and K is the quantity ofcapital input. If the price of K is $10 and the price of Lis $5, then the cost-minimizing combination of K and Lcapable of producing 32 units of output is:L = 2 and K = 4.L = 4 and K = 2.L = 1 and K = 8.L = 8 and K = 1.L = 2 and K = 2.

Cost-minimizing combinations refer to such combinations of inputs that produce the output with the…

Output is produced according to Q = 4LK, where L is the quantity of labor input and K is the quantity of capital input. If the price of K is $10 and the price of L s $5, then the cost-minimizing combination of K and L capable of producing 32 units of output is: L = 2 and K= 4. L = 4 and K = 2.

Output is produced according to Q = 4LK, where L is the quantity of labor input and K is the quantity of capital input. If the price of K is $10 and the price of L s $5, then the cost-minimizing combination of K and L capable of producing 32 units of output is: L = 2 and K= 4. L = 4 and K = 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Output is produced according to Q = 4LK, where Lis
the quantity of labor input and K is the quantity of
capital input. If the price of K is $10 and the price of L
is $5, then the cost-minimizing combination of K and L
capable of producing 32 units of output is:
L = 2 and K = 4.
L = 4 and K = 2.
L = 1 and K = 8.
L = 8 and K = 1.
L = 2 and K = 2.

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