In the short run, a firm which has production function f(L, M) = 4L"²M² must use 4 machines. If the cost of labor is £4 per unit and the cost of machines is £4 per unit, the short- run total cost of producing 48 units of output is A. £192. В. £196. С. £198. D. £320. Е. £160.

In the short run, a firm which has production function f(L, M) = 4L"²M² must use 4 machines. If the cost of labor is £4 per unit and the cost of machines is £4 per unit, the short- run total cost of producing 48 units of output is A. £192. В. £196. С. £198. D. £320. Е. £160.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.4: Costs In The Short Run And In The Long Run

Problem 4QQ

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Question

In the short run, a firm which has production function f(L, M) = 4L"²M"? must use 4
machines. If the cost of labor is £4 per unit and the cost of machines is £4 per unit, the short-
run total cost of producing 48 units of output is
А.
£192.
В.
£196.
С.
£198.
D.
£320.
Е.
£160.

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