Refer to the Following:
a Firm Estimates Its Long-Run Production $$Q = - 0.0075 K ^ { - 3 } L ^ { 3 } + 12 K ^ { 2 } L ^ { 2 }$$

question 54

Multiple Choice

Refer to the following:
A firm estimates its long-run production function to be

$$Q = - 0.0075 K ^ { - 3 } L ^ { 3 } + 12 K ^ { 2 } L ^ { 2 }$$
Suppose the firm employs 12 units of capital.
-The product curve(s) in the short-run are

• A) TP = -12.96 L³ + 1,728L².
• B) AP = -12.96 L³ + 1,728L².
• C) MP = -38.88 L² + 3,456L.
• D) both a and b
• E) both a and c

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Definitions:

Mutually-Agreeable Trade

A transaction or trade that both parties involved consent to and believe will benefit them.

Opportunity Cost

The expense incurred by not selecting the second-best option when deciding among various choices.

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service to procure it.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the amount they actually receive.