A Firm Has a Production Function of , the Rental

question 172

Multiple Choice

A firm has a production function of , the rental rate of capital is $15, and the wage rate is $10. In the short run,
Is fixed at 100 units. The short-run demand for labor is L = ____.

• A) Q²/100
• B) 100Q²
• C) 5Q^0.5
• D) Q^0.5/100

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Definitions:

Groupthink

A psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Conformity

The tendency of individuals to align their attitudes, beliefs, and behaviors with those of a group.

Social Loafing

The phenomenon of a person exerting less effort to achieve a goal when they work in a group than when they work alone.

Social Facilitation

The tendency for individuals to perform differently when in the presence of others than when alone, usually showing improvement in tasks they find easy or have well-rehearsed.