Scenario 7.2:
The production function for earthquake detectors (Q) is given as follows:
Q = 4K¹^/2L^1/2
where K is the amount of capital employed and L is the amount of labor employed. The price of capital, P_K, is $18 and the price of labor, P_L, is $2.
-Refer to Scenario 7.2. What is the marginal cost of the 60th earthquake detector?

Question

Quizplus · Accepted Answer

The Answer of Scenario 7.2: The production function for earthquake detectors (Q) is given as follows: Q = 4K 1 /2 L 1/2 where K is the amount of capital employed and L is the amount of labor employed. The price of capital, P K , is $18 and the price of labor, P L , is $2. -Refer to Scenario 7.2. What is the marginal cost of the 60th earthquake detector? A) 0 B) 5 ^1/2 C) 3 D) 5 E) none of the above

Scenario 7.2: the Production Function for Earthquake Detectors (Q) Is Given as Given