Suppose a firm's short-run production function is given by Q = F(L) = 4L. If the wage rate is $12 and the firm has sunk costs of $300, then the firm's variable cost function is:
A. VC(Q) = $12Q.
B. VC(L) = $3L.
C. VC(Q) = $3Q.
D. VC(Q) = $300 + $12Q.
C. VC(Q) = $3Q.
You might also like to view...
In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140 million, and the total number of people unemployed was 5.0 million
What was the labor force participation rate? A) 78 percent B) 56 percent C) 69 percent D) 90 percent E) 67 percent
When an average cost pricing rule is imposed on a natural monopoly, ________
A) total surplus is maximized and the monopoly incurs an economic loss B) the monopoly makes zero economic profit C) the monopoly makes an economic profit D) total surplus is maximized and the monopoly makes an economic profit
In macroeconomics, we analyze
a. all of the following b. the overall performance of the economy as a whole c. arrangements through which specific products are exchanged d. influences on the decision making of particular households e. the factors that affect the decisions of individual firms
If marginal revenue equals marginal cost in the short run, the perfectly competitive firm earns zero profits
a. True b. False Indicate whether the statement is true or false