Suppose that in the short run, the firm which has production function F(L, M)-4L2M2 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 O a. $900 O b.$500 Oc. $540. Od. $600 $450.

Suppose that in the short run, the firm which has production function F(L, M)-4L2M2 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 O a. $900 O b.$500 Oc. $540. Od. $600 $450.

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

Suppose that in the short run, the firm which has production function F(L, M)=4L 2M2 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
Oa. $900.
Ob.$500
Oc. $540.
Od. $600.
Oe. $450.

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