Suppose That Production for Good X Is Characterized by the Following

question 20

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 average fixed cost of using 81 units of capital and 9 units of labor is:

• A) $5.
• B) $75.
• C) $80.
• D) There is insufficient information to determine the average fixed costs.

---

Definitions:

Job Performance

The manner in which an employee executes their work duties and responsibilities, often measured against pre-established criteria or objectives.

Career Success

The achievement of personal work-related goals and objectives, often characterized by promotions, recognition, and personal satisfaction.

Teams

Groups of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.

Political Skill

The ability to understand others at work and to use such knowledge to influence others to act in ways that enhance personal and/or organizational objectives.