A firm operates with the production function Q=2L+4K. The firm has target production of 420 units of output per day. The firm has a fixed quantity of 80 units of capital in the short run. The daily wage of a worker is $100 and the rental rate of capital per unit is $50. If the firm is minimizing costs, its total production cost in the short run is in the long run is A) $4,000; $9,000 B) $14,000; $9,000 C) $8,000; $4,000 D) $9,000; $5,250 and its total production cost

A firm operates with the production function Q=2L+4K. The firm has target production of 420 units of output per day. The firm has a fixed quantity of 80 units of capital in the short run. The daily wage of a worker is $100 and the rental rate of capital per unit is $50. If the firm is minimizing costs, its total production cost in the short run is in the long run is A) $4,000; $9,000 B) $14,000; $9,000 C) $8,000; $4,000 D) $9,000; $5,250 and its total production cost

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.9P

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