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 $6 per unit, the short-run total cost of producing 84 units of output is
A) $598.
B) $420.
C) $462.
D) $504.
E) $299.

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 $6 per unit, the short-run total cost of producing 84 units of output is
A) $598. 
B) $420. 
C) $462. 
D) $504. 
E) $299.

Quizplus · Accepted Answer

The Answer is E

Suppose That in the Short Run, the Firm in Problem