A firm is currently producing1140 units of output according to the production function q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. In the short run, capital is fixed at 5 units. In the long run, the firm's costs are
A) lower because the firm substitutes towards more labor and away from capital.
B) lower because the firm substitutes towards more capital and away from labor.
C) higher because the firm substitutes towards more labor and away from capital.
D) higher because the firm substitutes towards more capital and away from labor.
B
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When logging in the Pacific Northwest destroys forests that hikers would have used for eco-tourism, the destruction of the trails is an example of
A) an external cost. B) a private cost. C) a government cost. D) an external benefit. E) None of the above answers is correct.
In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize
a. True b. False Indicate whether the statement is true or false
If either the production or consumption of a good generates an external cost, then the:
A. social demand curve will lie to the right of the private demand curve. B. social demand for the good will equal zero. C. social marginal cost curve will lie to the left of the private marginal cost curve. D. social marginal cost curve will lie to the right of the private marginal cost curve.
Demand is more elastic for an item which represents a relatively large part of a person's total budget.
Answer the following statement true (T) or false (F)