Suppose $Q = \sqrt { \bar { K } L }$

question 45

Multiple Choice

Suppose $Q = \sqrt { \bar { K } L }$ in the short-run. The firm's short-run fixed cost curve is

• A) \(S F C = \frac { Q ^ { 2 } } { \bar { K } }\)
• B) \(S F C = \frac { w Q ^ { 2 } } { \bar { K } } + r \bar { K }\)
• C) \(S F C = w Q ^ { 2 }/\bar { K }\)
• D) \(S FC = r \bar { K }\)

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Definitions:

Profitability

A measure of how much profit a business generates compared to its revenue or assets, indicating financial success.

Vertical Analysis

A method of financial statement analysis where each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Percentage Analysis

A method of financial statement analysis in which all items are displayed as a percentage of a certain base figure, facilitating comparison between periods or companies.

Financial Statement

A record that outlines the financial activities and current financial condition of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.