Suppose a Firm's Short-Run Production Function Is Given by Q

question 17

Multiple Choice

Suppose a firm's short-run production function is given by Q = F(L) = 4L.If the wage rate is $12 and the firm has sunk costs of $300,then the firm's variable cost function is:

• A) VC(Q) = $12Q.
• B) VC(L) = $3L.
• C) VC(Q) = $3Q.
• D) VC(Q) = $300 + $12Q.

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