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 $7 per unit and the cost of machines is $9 per unit, the short-run total cost of producing 96 units of output is
A) $1,058.
B) $672.
C) $864.
D) $768.
E) $529.

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 $7 per unit and the cost of machines is $9 per unit, the short-run total cost of producing 96 units of output is
A) $1,058. 
B) $672. 
C) $864. 
D) $768. 
E) $529.

Quizplus · Accepted Answer

The Answer is E

Suppose That in the Short Run, the Firm in Problem