If the Production Function Is Q = K

question 16

Multiple Choice

If the production function is Q = K^.5L^.5 and capital is fixed at 1 unit,then the average product of labor when L = 36 is:

• A) 1/3.
• B) 1/6.
• C) 2/3.
• D) None of the answers are correct.

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Definitions:

Interactions

In an experiment or statistical model, the way in which the effect of one explanatory variable on a response variable changes depending on the level of another explanatory variable.

Two-Way Analysis

A statistical method used to examine the effects of two independent variables on a dependent variable, often to understand interactions between the two variables.

Categorical Variables

Variables that represent types or categories, allowing for classification of individuals or items into distinct groups.

Residual Variation

The variation in a dataset that is not explained by the model being used, essentially the difference between observed and predicted values.