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Microeconomics

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Cheeseburger and Fries

MICRO-YRTX4N

King Donald hires workers and rents capital to make him cheeseburgers and fries. His cheeseburger and fry factory (kitchen) has a production function $q(L,K) = LK/100$. He originally hires $5$ workers and uses $\$200$ of capital to make the number of cheeseburgers and fries he requires to satiate his hunger. Workers are becoming more expensive, however, so he chooses to fire one unlucky worker.

How much more must King Donald invest in capital to achieve his previous amount of cheeseburger and fry output?

A

$1000$

B

$250$

C

$200$

D

$10$