If the Production Function Is Q = K

question 7

Multiple Choice

If the production function is Q = K^.5L^.5 and capital is fixed at 9 units,then the marginal product of labor when L = 49 is:

• A) 3.
• B) 9/98.
• C) 3/14.
• D) None of the answers are correct.

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Definitions:

Grace Period

A set time period after a payment is due during which a late fee is not charged, allowing a short extension for the payment without penalty.

Principal

The initial sum of money placed in an investment or lent out, excluding any interest or earnings.

Treasury Bill

Short-term government securities issued at a discount from the par value and mature without additional interest.

Simple Interest

Interest computed solely on the initial sum, or on the unpaid balance of that initial sum.