A Firm Is Currently Producing 1140 Units of Output According

question 66

Multiple Choice

A firm is currently producing 1140 units of output according to the production function q = L^4/3K^1/2 and faces input prices equal to w = $20 and r = $80.In the short run,capital is fixed at 5 units.In the long run,the firm's costs are

• A) lower because the firm substitutes towards more labor and away from capital.
• B) lower because the firm substitutes towards more capital and away from labor.
• C) higher because the firm substitutes towards more labor and away from capital.
• D) higher because the firm substitutes towards more capital and away from labor.

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Definitions:

Dopamine

A neurotransmitter involved in many functions, including motivation, reward, reinforcement, motor control, and the regulation of mood.

Hotspots

Areas or regions that are significantly warmer than their surroundings, often referring to places of increased activity or danger in various contexts.

Serotonin

A neurotransmitter that helps regulate mood, appetite, sleep, memory, and learning.

Opioids

A class of drugs that include the illegal drug heroin, synthetic opioids such as fentanyl, and pain relievers available by prescription, used primarily for pain relief.