Suppose a Production Function Is Q = K^1/2L^1/3 and in the Short

question 15

Multiple Choice

Suppose a production function is q = K^1/2L^1/3 and in the short run capital (K) is fixed at 100. If the wage is $10 and the rental rate on capital is $20,the short run average cost is

• A) \(\frac { 2,000 } { q } + \frac { q ^ { 2 } } { 100 }\)
• B) \(\frac { 200 } { q } + 10 q ^ { 2 }\)
• C) \(\frac { 2,000 } { q }\)
• D) \(q ^ { 2 }\)

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Definitions:

Experimental Research

A research method involving the manipulation of variables to test hypotheses and determine cause-and-effect relationships.

Selection Bias

A distortion of statistical analysis results due to the method of collecting samples, which might not be representative of the entire population.

Comparable

Similar or equivalent in some respects, though not identical, typically used for assessment or comparison.