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Suppose Q=KˉLQ = \sqrt { \bar { K } } L

Question 21

Multiple Choice

Suppose Q=KˉLQ = \sqrt { \bar { K } } L in the short-run. The firm's short-run total cost curve is:


A) STC=Q2KˉS T C = \frac { Q ^ { 2 } } { \bar { K } }
B) STC=wKˉQ+rKˉS T C = \frac { w \bar { K } } { Q } + r \bar { K }
C) STC=Q2+KˉS T C = Q ^ { 2 } + \bar { K }
D) STC=wQ2Kˉ+rKˉS T C = \frac { w Q ^ { 2 } } { \bar { K } } + r \bar { K }

Correct Answer:

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