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

question 21

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 fixed cost is

• A)$2,000
• B)$200
• C)$20,000
• D)$0

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Definitions:

Lease Liability

Financial obligation that a lessee has to make payments resulting from a lease agreement, over the lease term.

Implied Warranty

An unstated guarantee that a product or service will meet certain standards of quality and reliability.

Housing Codes

Regulations and standards established to ensure residential buildings are safe, sanitary, and suitable for occupants.

Reasonable Security

Measures taken to protect electronic personal and business data from unauthorized access or alteration, using methods considered appropriate and sufficient.