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
You might also like to view...
If a country's currency depreciates, then its exports will cost ________ abroad and its imports will cost ________ domestically
A) less; less B) less; more C) more; less D) more; more
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
A) Investors A and B will hold the same portfolio. B) Investors A and B will have different portfolios of the same standard deviation. C) Investors A and B will have different portfolios of the same rate of return. D) Investors A and B will have different portfolios but have the same level of risk aversion. E) Investor A will expect to earn a lower rate of return than investor B.
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
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.