Suppose That Production for Good X Is Characterized by the Following

question 99

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 $86.80 and the per-unit wage,w,is $20,then the average total cost of using 25 units of capital and 49 units of labor is:

• A) $5.
• B) $75.
• C) $90.
• D) There is insufficient information to determine the average total costs.

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Definitions:

Bit Rate

Measures the rate at which bits are transferred or processed, often used in reference to the quality and speed of digital audio or video streams.

Audio File

A digital file format used for storing sound and music. Examples include MP3, WAV, and AAC formats.

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.

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