Question
Suppose that production for good X is characterized by the following production function, Q = K 0.5 L 0.5 , where K is the fixed
Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $25 and the per-unit wage, w, is $15, then the average fixed cost of using 81 units of capital and 9 units of labor is:
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Economics
Authors: Stephen Slavin
11th Edition
978-0078021800, 0078021804
