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Suppose a Production Function Is Q = K1/2L1/3 and in the Short

Question 22

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Suppose a production function is q = K1/2L1/3 and in the short run capital (K) is fixed at 100.If the wage is $10 and the rental rate on capital is $20,the short run average cost is


A) SAC = Suppose a production function is q = K<sup>1/2</sup>L<sup>1/3</sup> and in the short run capital (K) is fixed at 100.If the wage is $10 and the rental rate on capital is $20,the short run average cost is A) SAC = B) SC = + 10q<sup>2</sup> C) SC = 2000/q D) SC = q<sup>2</sup>
B) SC = Suppose a production function is q = K<sup>1/2</sup>L<sup>1/3</sup> and in the short run capital (K) is fixed at 100.If the wage is $10 and the rental rate on capital is $20,the short run average cost is A) SAC = B) SC = + 10q<sup>2</sup> C) SC = 2000/q D) SC = q<sup>2</sup> + 10q2
C) SC = 2000/q
D) SC = q2

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