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:

Social Reproduction

The process by which societies transmit cultural, social, and economic systems across generations, maintaining continuity and norms.

Capitalist Economy

An economic system where private individuals or businesses own capital goods and the production of goods and services is based on supply and demand in a market.

Generational Reproduction

The process by which societal norms, values, and status are transmitted from one generation to the next, often perpetuating social inequalities.

Historically Deeply

Ingrained or entrenched within historical contexts, suggesting something has profound historical roots or influences.