A Firm Has the Production Function Q = X^1/2₁X₂

question 28

Multiple Choice

A firm has the production function Q = X^1/2₁X₂.In the short run it must use exactly 15 units of factor 2.The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit.The firm's short-run marginal cost function is

• A)MC(Q)= 10Q/15.
• B)MC(Q)= 30Q^1/2.
• C)MC(Q)= 30 + 75Q2.
• D)MC(Q)= 2Q.
• E)MC(Q)= 15Q^1/2.

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Definitions:

SSR

Stands for Sum of Squares due to Regression, which measures the variation explained by the regression line in the context of statistical analysis.

Simple Linear Regression

A statistical method for examining the linear relationship between two quantitative variables; one variable is used to predict the outcome of another.

Probabilistic Model Equation

A mathematical representation of a statistical model that incorporates randomness and accounts for the probability of various outcomes.

Deviation

The difference between a observed value and some reference point, often the mean of the data set.