Diana uses one input, i.e., labor (L) to produce a product according to the following production function: Q = f(L) = 2 . She pays $15 per unit of labor. What is the cost of production at the level of 100 units of output?
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Diana uses one input, i.e., labor (L) to produce a product according to the following production function: Q = f(L) = 2 L². She pays $15 per unit of labor. What is the cost of production at the level of 100 units of output? (A) $15.07 (B) $25.07 (C) $106.07 (D) $150.07
Also written as: Diana uses one input, i.e., labor (L) to produce a product according to the following production function: Q = f(L) = 2 L^2. She pays $15 per unit of labor. What is the cost of production at the level of 100 units of output?
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 JNU SSS 2019 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.