Suppose That Production for Good X Is Characterized by the Following

question 174

Multiple Choice

Suppose that production for good X is characterized by the following production function, Q = K^0.5L^0.5, where K is the fixed input in the short run.If the per-unit rental rate of capital, r, is $25 and the per-unit wage, w, is $15, then the variable cost of using 81 units of capital and 9 units of labor is

• A)$2,160.
• B)$2,025.
• C)$135.
• D)there is insufficient information to determine the variable costs.

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Definitions:

Wooded Area

A region covered with trees and shrubs, often serving as a habitat for various forms of wildlife and a vital part of an ecosystem.

Carnivore

An animal or organism that primarily consumes the flesh of other animals for nutrition.

Herbivore

An animal that primarily eats plants or plant-based materials.

Trophic Level

The position an organism occupies in a food chain, indicating its level of energy transfer.