When the Production Function Is Given by Q = L

question 5

Multiple Choice

When the production function is given by Q = L, which of the following statements is true?

• A) TC = wQ², L = Q² and AC = w
• B) TC = w - Q, L = Q and AC = w
• C) TC = wQ, L = Q and AC = w
• D) TC = wQ, L = Q and AC = L

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Definitions:

Preceding August

Indicates a time period or events that occurred before the month of August.

Payment Stream

A series of payments made or received over time, usually as part of a financial agreement such as a mortgage or annuity.

Economically Equivalent

Having the same financial value when considering various factors like time, risk, and opportunity cost.

Invested Rate

The rate of return on an investment, reflecting the annual income earned on the investment expressed as a percentage of its original cost.