When the Production Function Is Given by Q = L $\mathrm { TC } = w \mathrm { Q } ^ { 2 } , \mathrm {~L} = \mathrm { Q } ^ { 2 }$

question 28

Multiple Choice

When the production function is given by Q = L, which of the following statements is true?

• A) \(\mathrm { TC } = w \mathrm { Q } ^ { 2 } , \mathrm {~L} = \mathrm { Q } ^ { 2 }\) and \(\mathrm { AC } = \mathrm { w }\)
• B) \(\mathrm { TC } = \mathrm { w } - \mathrm { Q } , \mathrm { L } = \mathrm { Q }\) and \(\mathrm { AC } = \mathrm { w }\)
• C) \(\mathrm { TC } = w Q , \mathrm {~L} = \mathrm { Q }\) and \(\mathrm { AC } = \mathrm { w }\)
• D) \(T C = w Q , L = Q\) and \(A C = L\)

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Definitions:

Sample

A subset of individuals or observations from a population used to estimate parameters or statistics of the whole population.

Mean

The average of a set of numbers, calculated by summing them up and dividing by the number of summands.

Standard Deviation

A measure of the amount of variability or dispersion of a set of values around the mean.

Confidence Interval

A span of numbers, calculated from observed data statistics, that probably encompasses an unknown parameter of a population.