A firm has the production function , where is output and are labour and capital. If the input price of is Rupee 1 and the input price of is Rupees 2, then to produce costs the firm at least
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A firm has the production function , where is output and are labour and capital. If the input price of is Rupee 1 and the input price of is Rupees 2, then to produce costs the firm at least
Tap an option to check your answer.
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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.
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.
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Question from the DSE 2009 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.