Suppose that in the short run, the firm which has production function F(L, M) =4L^1/2M^1/2 must use 9 machines.If the cost of labor is $5 per unit and the cost of machines is $5 per unit, the short-run total cost of producing 108 units of output is

A) $900
B) $540
C) $540.
D) $450

Short-Run Total Cost

The total of all costs, both fixed and variable, involved in the production of goods or services in the short run.

Production Function

This concept describes the relationship between inputs used in production and the resulting output.

Labor

The human effort, whether physical or mental, that is used in the production of goods and services.