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 cost function is:
A. C(Q) = $12L.
B. C(L) = $300 + $3L.
C. C(Q) = $300 + $3Q.
D. C(Q) = $300 + $12Q.
C. C(Q) = $300 + $3Q.
You might also like to view...
Using Taylor's rule, when the equilibrium real federal funds rate is 3 percent, the positive output gap is 2 percent, the target inflation rate is 1 percent, and the actual inflation rate is 2 percent, the nominal federal funds rate target should be
A) 5 percent. B) 5.5 percent. C) 6 percent. D) 6.5 percent.
A less advanced country can improve its productivity by:
a. repurposing b. imitating c. reusing d. redeveloping
Suppose the production function for a certain device is q = L + K. If neutral technical change has occurred, which of the following could be the new production function?
A) q = L + 5K B) q = 5 ? (L + K) C) q = 5L + K D) All of the above are possible.
Which of the following statements about stocks and bonds is true?
A. Stocks pay interest while bonds pay dividends B. One can lose with stocks, but not with bonds C. The U.S. Federal government issues bonds, but not stocks D. Bonds are long term while stocks are short term investments