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Questions › DSE › DSE 2009 › Q15
1 markMicroeconomics › Costs of production › Cost minimisation and long-run input choiceHardabout 4 min

DSE 2009 Question 15: Costs of production

A firm has the production function y=min⁡{L+2K, 2L+K}y=\min\{L+2K,\ 2L+K\}y=min{L+2K, 2L+K}, where yyy is output and L,KL,KL,K are labour and capital. If the input price of LLL is Rupee 1 and the input price of KKK is Rupees 2, then to produce y=12y=12y=12 costs the firm at least

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A firm has the production function y=min {L+2K, 2L+K}, where y is output and L,K are labour and capital. If the input price of L is Rupee 1 and the input price of K is Rupees 2, then to produce y=12 costs the firm at least (A) 10 Rupees (B) 12 Rupees (C) 14 Rupees (D) 16 Rupees

Costs of production has come up 83 times in 7 exams since 2006.

What this question tests

This question is on Cost minimisation and long-run input choice, part of Costs of production in Microeconomics.

Choosing inputs to produce a given output at least cost, including across several plants.

TestStop has 22 past-paper questions on this subtopic; the nearest in year are below.

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Question from the DSE 2009 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.