A firm is currently producing 100 widgets using 4 units of labor and 1
A firm is currently producing 100 widgets using 4 units of labor and 12 units of capital. The firm’s production function exhibits constant returns to scale. How many units of labor and capital are needed to produce 350 widgets?
A) L = 14; K = 42
B) L = 15; K = 45
C) L = 14; K = 44
D) L = 15; K = 42
ANSWER
A
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