Suppose the Short-Run Production Function Is Q = L⁰

question 65

Multiple Choice

Suppose the short-run production function is q = L⁰.⁵.If the marginal cost of producing the tenth unit is $5,what is the wage per unit of labor?

• A) $1
• B) 5¢
• C) 25¢
• D) It cannot be determined without more information.

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Definitions:

Components

Individual parts or elements that make up a larger system, machine, or assembly.

Aggregate Plan

A plan that includes forecast levels for families of products of finished goods, inventory, shortages, and changes in the workforce.

Master Production Schedule

A plan for individual commodities to be produced in each time period, serving as a link between production planning and manufacturing.

Lot-For-Lot

A lot-sizing technique that generates exactly what is required to meet the plan.