Suppose the Firm's Production Function Is Q = K^1/3L^2/3, Where

question 60

Multiple Choice

Suppose the firm's production function is Q = K^1/3L^2/3, where the MPK = and MP_L =
)
If the rental rate of capital R is $30 and the wage rate W is $40, then the cost-minimizing capital-to-labor ratio is K/L = ____.

• A) 3/2
• B) 1
• C) 2/3
• D) 1/2

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Government Revenue

The total money received by a government from taxes and non-tax sources to finance government operations and services.

Excise Tax

A tax applied to specific goods or services, often included in the price of products such as tobacco, alcohol, and fuel.

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The percentage of the total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Personal Income

The total amount of income received by an individual or household from all sources before taxes and deductions.