A Firm's Production Function Is Given by Q = Min{M

question 30

Multiple Choice

A firm's production function is given by q = min{M, L^1/2}, where M is the number of machines and L is the amount of labor that it uses.The price of labor is $1and the price of machines is $2 per unit.The firm's long-run marginal cost curve is

• A)a straight line with slope 2.
• B)upward sloping and gets flatter as Q increases.
• C)upward sloping and gets steeper as Q increases
• D)a straight line with slope 1.
• E)a straight line with slope 2

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Definitions:

Sample Means

The average value of a set of data samples taken from a larger population.

One-way ANOVA

A statistical test used to compare the means of three or more independent groups to see if at least one mean is different from the others.

Population Means

Refers to the average values obtained from distinct and entire groups within a dataset or statistical model.

Null Hypothesis

In statistical analysis, a hypothesis that suggests no significant difference exists between specified populations, any observed difference being due to sampling or experimental error.