Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, 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 variable cost of using 81 units of capital and 9 units of labor is:
A. $80.
B. $75.
C. $5.
D. There is insufficient information to determine the average variable costs.
Answer: C
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The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = $1 represents the world supply curve. Currently Q1 units are imported
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Based on the answer above, the price for peanut butter_____________ and the quantity demanded for peanut butter ____________
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All members of the Federal Board of Governors are appointed by the president and confirmed by the Senate
a. True b. False Indicate whether the statement is true or false