Minimum cost of producing

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Reference no: EM131004471

Suppose that the following is true: "When w = v = $10 , the cost-minimizing bundle for q = 100 units of output is k = l = 20. When w = $8 and v = $10 , the cost minimizing bundle for q = 110 units of output is l = 28 and k = 19." Indicate whether each of the following statements is true, false, or uncertain. Explain your answer.

a) When w = v = $5, AC for q = 100 is $2

b) When w = v = $20 , the minimum cost of producing q = 110 is no greater than $940

c) The bundle (22, 22) can produce at least q = 110 units of output

Reference no: EM131004471

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