A firm's production function is given by .The marginal products of labor and capital are,respectively, and .Further,the wage rate is and the rental rate of capital is .Suppose that the firm spends exactly $1200 in the most efficient way possible.How much output can the firm produce?
A) 50,000
B) 56,406.25
C) 60,750
D) 64,000

Question

A firm's production function is given by  .The marginal products of labor and capital are,respectively,  and  .Further,the wage rate is  and the rental rate of capital is  .Suppose that the firm spends exactly $1200 in the most efficient way possible.How much output can the firm produce?
A) 50,000 
B) 56,406.25 
C) 60,750 
D) 64,000

Quizplus · Accepted Answer

The Answer of A firm's production function is given by  .The marginal products of labor and capital are,respectively,  and  .Further,the wage rate is  and the rental rate of capital is  .Suppose that the firm spends exactly $1200 in the most efficient way possible.How much output can the firm produce?
A) 50,000 
B) 56,406.25 
C) 60,750 
D) 64,000

A Firm's Production Function Is Given by