The Production Function for a Competitive Firm Is Q =

question 86

Multiple Choice

The production function for a competitive firm is Q = K^.5L^.5.The firm sells its output at a price of $10,and can hire labor at a wage of $5.Capital is fixed at one unit.The profit-maximizing quantity of labor is:

• A) 2/5.
• B) 1.
• C) 10.
• D) None of the answers are correct.

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