The production function is f (L, M) = 4 , where L is the number of units of labor and M is the number of machines used. If the cost of labor is $36 per unit and the cost of machines is $4 per unit, then the total cost of producing 6 units of output will be
A) $72.
B) $36.
C) $120.
D) $24.
E) None of the above.

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 used. If the cost of labor is $36 per unit and the cost of machines is $4 per unit, then the total cost of producing 6 units of output will be
A) $72. 
B) $36. 
C) $120. 
D) $24. 
E) None of the above.

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 used. If the cost of labor is $36 per unit and the cost of machines is $4 per unit, then the total cost of producing 6 units of output will be
A) $72. 
B) $36. 
C) $120. 
D) $24. 
E) None of the above.

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