Suppose That Production for Good X Is Characterized by the Following

Multiple Choice

Suppose that production for good X is characterized by the following production function, Q = K^0.5L^0.5, where K is the fixed input in the short run.If the per-unit rental rate of capital, r, is $25 and the per-unit wage, w, is $15, then the fixed cost of using 81 units of capital and 9 units of labor is

A) $2,160.
B) $2,025.
C) $135.
D) there is insufficient information to determine the fixed costs.