Touchie MacFeelie's production function is 0.1J^1/2 L^3/4, where J is the number of old jokes used and L is the number of hours of cartoonists' labor.Touchie is stuck with 900 old jokes for which he paid 4 dollars each.If the wage rate for cartoonists is 6 dollars, then the total cost of producing 24 comics books is A)3,720 dollars. B)3,696 dollars. C)1,848 dollars. D)5,544 dollars. E)924 dollars.

Question

Quizplus · Accepted Answer

To find the total cost of production, we need to find the total cost of inputs (old jokes and labor). Cost of old jokes: Touchie has 900 old jokes and each joke cost him 4 dollars. So, the total cost of old jokes is: 900 x 4 = 3600 dollars Cost of labor: Touchie needs to produce 24 comics books, and the production function gives us the amount of labor required per book. We can find the total labor needed as follows: LS = 0.1J^1/2U + L^3/4 LS = 0.1(0)^1/2U + L^3/4 (since J=0 for the first comic book) LS = L^3/4 For the first comic book, Touchie will need L^3/4 hours of labor. For the second book, he will again need L^3/4 hours of labor, and so on. So, for 24 comic books: Total labor = 24 x L^3/4 Plugging in the values, we get: Total labor = 24 x (0.1 x 0 x (1)^(1/2) x (1)^(1/2) x (0)^(1) + (1)^(3/4) x (1)^(1/4) x (6)^(3/4) x (0)^(1)) Total labor = 24 x (1.5) = 36 hours The total cost of labor is therefore: Total labor cost = 36 x 6 = 216 dollars So, the total cost of production is: Total cost = Cost of old jokes + Total labor cost Total cost = 3600 + 216 = 3816 dollars However, we need to be careful because the question asks for the total cost of producing 24 comics books, not just one. So, we need to divide the total cost by 24 to get the cost per book: Cost per book = Total cost / Number of books Cost per book = 3816 / 24 = 159 dollars So, the correct answer is B) 3696 dollars.

Touchie MacFeelie's Production Function Is 0