- Incorrect Question 2 0 1 Pts Consider A Firm That Uses A Production Function Of The Form Q L K Where L Denotes The Amo 1 (63.73 KiB) Viewed 25 times
Incorrect Question 2 0/1 pts Consider a firm that uses a production function of the form Q = L*K where L denotes the amount of labour input and K the amount of capital input. The cost of labour is $20 per unit while the cost of capital is $200 per unit. The firm wishes to produce 1000 units of output and wants to produce this output in a way that minimizes the cost of production. Which of the following statements is CORRECT? In order to produce 1000 units of output at least cost, the firm should use 100 units of K, 10 units of L and it will cost the firm $10000. In order to produce 1000 units of output at least cost, the firm should use 10 units of K, 50 units of L and it will cost the firm $1500. In order to produce 1000 units of output at least cost, the firm should use 10 units of K, 10 units of L and it will cost the firm $1100. In order to produce 1000 units of output at least cost, the firm should use 10 units of K, 100 units of L and it will cost the firm $4000.