The production function is f (L, M) = 4 , where L is the number of units of labor and M is the number of machines. If the amounts of both factors can be varied and if the cost of labor is $64 per unit and the cost of using machines is $1 per machine, then the total cost of producing 20 units of output is
A) $80.
B) $650.
C) $20.
D) $320.
E) $40.

Question

The production function is f (L, M) = 4  , where L is the number of units of labor and M is the number of machines. If the amounts of both factors can be varied and if the cost of labor is $64 per unit and the cost of using machines is $1 per machine, then the total cost of producing 20 units of output is
A) $80. 
B) $650. 
C) $20. 
D) $320. 
E) $40.

Quizplus · Accepted Answer

The Answer of The production function is f (L, M) = 4  , where L is the number of units of labor and M is the number of machines. If the amounts of both factors can be varied and if the cost of labor is $64 per unit and the cost of using machines is $1 per machine, then the total cost of producing 20 units of output is
A) $80. 
B) $650. 
C) $20. 
D) $320. 
E) $40.

The Production Function Is F (L, M) = 4