Suppose a firm with a production function given by Q = 4K0.25L0.75 produces 100 units of output. The firm pays a wage of $30 per units and pays a rental rate of capital of $10 per unit. (Note: ) .
The minimum cost of producing 100 units of output is:
A) $3,000.
B) $2,250.
C) $800.
D) $1,000.
Correct Answer:
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