If output is produced according to Q
11. If output is produced according to Q = 5Lk (L is the quantity of labor and k is the quantity of capital), the price of K is $12, and the price of L is $6, then the cost minimizing combination of K and L capable of producing 4,000 units of output is
A. L = 25 and k = 32.
B. L = 30 and k = 26.67.
C. L = 10 and k = 80.
D. L = 20 and k = 40.
E. L = 40 and k = 20.
12. Hilltop Corporation has the following total function TC= Q2 + 120 Q + 400. The level of output where average cost is minimized for Hilltop Corp. is
18. If elasticity of demand is -2, marginal cost is 4, and average cost is 6, a profit maximizing markup price is
21. A firm has a division which produces chemical Y, whose average total costs are
ATC = 50 + 2Q (where Q is the quantity of Y), and a marketing division which adds its own average total costs of ATC = 20 + 3Q. There is no external market price of Y. The transfer price of Y should be
C. $50 + 4Q.