Output for a Simple Production Process Is Given by Q

question 21

Multiple Choice

Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labor. The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labor is $5 per unit. What is the total fixed cost of producing 80 units of output?

• A)$200
• B)$33
• C)$25
• D)$85

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Definitions:

Cultural Awareness

The understanding and sensitivity to the values, beliefs, practices, and cultural differences of other people.

Empathy

The ability to understand and share the feelings of another person, fostering a deeper emotional connection.

Empirically

Grounded in, related to, or confirmable through direct observation or actual experience rather than through theory or abstract reasoning.