Multiple Choice
Suppose that production for good X is characterized by the following production function,Q = K0.5L0.5,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 average total cost of using 81 units of capital and 9 units of labor is:
A) $5.
B) $75.
C) $80.
D) There is insufficient information to determine the average total costs.
Correct Answer:
Verified
Correct Answer:
Verified
Q56: The recipe that defines the maximum amount
Q57: Suppose the production function is given by
Q58: For given input prices,isocosts farther from the
Q59: For the cost function C(Q)= 100 +
Q60: The marginal product of capital for the
Q62: You are an efficiency expert hired by
Q63: Costs that change as output changes are:<br>A)
Q64: Given the linear production function Q =
Q65: The short run is defined as the
Q66: Firm managers should use inputs at levels