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Refer to the information given belowr for questions 23 to 23: Suppose a rm has the production function, Q = 20KL. It has a contract
Refer to the information given belowr for questions 23 to 23: Suppose a rm has the production function, Q = 20KL. It has a contract to produce 400 units of output per day. One way to do is to use 10 units of capital (K) and 2 units of labor (L). Suppose a unit of labor costs $15 (wage = w) while a unit of capital costs $5 (r). \f29. At this combination of inputs, is the firm producing the given output target of 400 units as cheaply as possible? A) Yes, it is producing the target of 400 units at minimum cost. B) No, it is not producing the target of 400 units at minimum cost. C) We do not have sufficient information to find out whether the firm is producing the target as cheaply as possible. D) Given the production function, it is not possible for the firm to choose any other input combination, regardless of the cost of production
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