Consider a firm with production function F(K, L)=KL

Economics Dec 06, 2020

Consider a firm with production function F(K, L)=KL. Assume that capital is fixed at K=1. Assume also that the rental rate (price) of capital r=10 and the wage rate (price) of labor w=3. The cost of production is the total expenditure on capital (fixed cost) and labor (variable cost). Then in the short run, the total cost of producing q units is ____.

Group of answer choices

C(q)=3+10q

C(q)=10+3q²

C(q)=1+q

C(q)=10+3q

C(q)=3+10q²

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