In the short run, a firm which has production function f (L, M) = 4 must use 4 machines. If the cost of labor is $4 per unit and the cost of machines is $10 per unit, the short-run total cost of producing 72 units of output is
A) $504.
B) $288.
C) $720.
D) $728.
E) $364.

Question

In the short run, a firm which has production function f (L, M) = 4  must use 4 machines. If the cost of labor is $4 per unit and the cost of machines is $10 per unit, the short-run total cost of producing 72 units of output is
A) $504. 
B) $288. 
C) $720. 
D) $728. 
E) $364.

Quizplus · Accepted Answer

The Answer of In the short run, a firm which has production function f (L, M) = 4  must use 4 machines. If the cost of labor is $4 per unit and the cost of machines is $10 per unit, the short-run total cost of producing 72 units of output is
A) $504. 
B) $288. 
C) $720. 
D) $728. 
E) $364.

In the Short Run, a Firm Which Has Production Function