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 average variable 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 variable costs.