Multiple Choice
A coffee shop's production function is given by Q = KL, where MPL = K and MPK = L. The barista wage rate is $10 and the rental per square foot is $15. In the short run, store size is fixed at 500 square feet. The long-run average total cost of producing 1,500 cups of coffee is $_____.
A) 6.03
B) 5.02
C) 2.34
D) 0.63
Correct Answer:
Verified
Correct Answer:
Verified
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