Question 28 Consider a firm with production function f(L,K)=3L1/3K2/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=5 and the price of labor w=3. Then, the average fixed cost of producing q units is? AF(q)=3/q. AF(q)=10/q. AF(q)=5/q. AF(q)=1/3q. AF(q)=2/3q.
Question 28 Consider a firm with production function f(L,K)=3L1/3K2/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=5 and the price of labor w=3. Then, the average fixed cost of producing q units is? AF(q)=3/q. AF(q)=10/q. AF(q)=5/q. AF(q)=1/3q. AF(q)=2/3q.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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Question 28
Consider a firm with production function f(L,K)=3L1/3K2/3. Assume that capital is fixed at K=1. Assume also that the
AF(q)=3/q.
AF(q)=10/q.
AF(q)=5/q.
AF(q)=1/3q.
AF(q)=2/3q.
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