Suppose that in the short run, the firm in Problem 3 which has production function F(L, M) must use 9 machines. If the cost of labor is $5 per unit and the cost of machines is $5 per unit, the short-run total cost of producing 108 units of output is
A) $900.
B) $540.
C) $540
D) .$540.
E) $450.

Question

Suppose that in the short run, the firm in Problem 3 which has production function F(L, M)  must use 9 machines. If the cost of labor is $5 per unit and the cost of machines is $5 per unit, the short-run total cost of producing 108 units of output is
A) $900. 
B) $540. 
C) $540 
D) .$540. 
E) $450.

Quizplus · Accepted Answer

The Answer of Suppose that in the short run, the firm in Problem 3 which has production function F(L, M)  must use 9 machines. If the cost of labor is $5 per unit and the cost of machines is $5 per unit, the short-run total cost of producing 108 units of output is
A) $900. 
B) $540. 
C) $540 
D) .$540. 
E) $450.

Suppose That in the Short Run, the Firm in Problem