A firms production function of output is y = 0.1K^(1/2)L^(1/2), where K is the number of hours of capital (machines) input and L is the number of hours of labour input.

The price of capital, wK, is $6 per machine-hour, and the price of labour, wL, is $4 perperson-hour.

In the short run, the firm uses 400 units of capital.

What is the total cost of producing 16 units of output?

a. $2,464.

b. $1,232.

c. $2,480.

d. $3,696.

e. $616.

Could you provide a detailed solution to why the Answer is A? ($2464)