Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labor. The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labor is $5 per unit. What is the variable cost of producing 80 units of output?
A) $200
B) $33
C) $25
D) $85
Correct Answer:
Verified
Q15: Gravel is made by hand in Nepal,
Q16: Total cost is broken down into two
Q17: Output for a simple production process is
Q18: The variable cost of zero units of
Q19: When costs are at a minimum,
A)the ratio
Q21: Geometrically, marginal cost at any level of
Q22: Average variable cost is
A)the ratio of total
Q23: The total fixed cost function
A)is horizontal.
B)is U-shaped.
C)is
Q24: The long-run total cost of zero output
Q25: MC equals
A)ΔTC/ΔQ.
B)ΔVC/ΔQ.
C)FC/Q.
D)VC/Q.
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