Suppose a firm has a production function Q = 10/KL %3D so that 5/K MPL VI 5VL VK MPK The firm uses 9 units of capital in the short run: K = 9 The wage is $80 and the rental rate of capital is $5. What is the cost of producing 60 units of output? $445 $108 $365 $276

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
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Suppose a firm has a production function
Q = 10VKL
so that
5/K
MPL
5/L
VK
MPK
The firm uses 9 units of capital in the short run:
K = 9
The wage is $80 and the rental rate of capital is $5 What is the cost of producing 60
units of output?
$445
$108
$365
$276
Transcribed Image Text:Question : Suppose a firm has a production function Q = 10VKL so that 5/K MPL 5/L VK MPK The firm uses 9 units of capital in the short run: K = 9 The wage is $80 and the rental rate of capital is $5 What is the cost of producing 60 units of output? $445 $108 $365 $276
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