Suppose That Production for Good X Is Characterized by the Following

question 61

Multiple Choice

Suppose that production for good X is characterized by the following production function,Q = K^0.5L^0.5,where K is the fixed input in the short run.If the per-unit rental rate of capital,r,is $25 and the per-unit wage,w,is $15,then the average total cost of using 81 units of capital and 9 units of labor is:

• A) $5.
• B) $75.
• C) $80.
• D) There is insufficient information to determine the average total costs.

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Definitions:

Operational Risks

The risks of loss resulting from inadequate or failed internal processes, people and systems, or from external events impacting the operation of a business.

Structural Risks

Refers to the potential for failure or significant damage to a system, organization, or structure due to inherent weaknesses or flaws.

Operational Risks

The possibility of experiencing a loss due to inefficient or malfunctioning internal procedures, individuals, and systems, or owing to occurrences outside the organization's control.

Vendors Quality

The measure of excellence or state of being free from defects, deficiencies, and significant variations, brought by the strict and consistent adherence to measurable and verifiable standards to meet consumer's satisfaction by the vendor.