Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 5?L?K. The firm has 100 units of capital. If the firm uses an efficient production method, how much output does it produce in the short run if it hires 25 workers?

A. 250 units

B. 1,250 units

C. 2,500 units

D. 50 units


A. 250 units

Economics

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If a perfectly competitive firm is operating in the short run and seeks to maximize profit, the firm should:

a. increase output whenever marginal cost is less than average total cost. b. increase output whenever marginal revenue is less than marginal cost. c. choose the output where per-unit profit is greatest d. increase output whenever price exceeds marginal cost.

Economics

The indifference curves of two investors are plotted against a single budget line. Indifference curve A is shown as tangent to the budget line at a point to the left of indifference curve B's tangency to the same line

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Economics

Marginal cost

a. Is the additional cost incurred by producing and selling one more unit b. Is the total cost incurred by producing and selling one more unit c. Is the additional fixed cost incurred by producing and selling one more unit d. None of the above

Economics