If the Production Function Is Q = K

question 16

Multiple Choice

If the production function is Q = K^.5L^.5 and capital is fixed at 1 unit,then the average product of labor when L = 36 is:

• A) 1/3.
• B) 1/6.
• C) 2/3.
• D) None of the answers are correct.

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Definitions:

Price Discrimination

A pricing strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly as its price changes.

Oligopoly

A market structure in which a small number of firms dominate the market, leading to limited competition.

Market Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by all consumers in the market.