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

Question 15

Multiple Choice

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) 2,000q+q2100\frac { 2,000 } { q } + \frac { q ^ { 2 } } { 100 }
B) 200q+10q2\frac { 200 } { q } + 10 q ^ { 2 }
C) 2,000q\frac { 2,000 } { q }
D) q2q ^ { 2 }

Correct Answer:

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