Question 32 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 cost of producing q units is? AC(q)=10/q+q2. AC(q)=3/q+q/9. AC(q)=2/3q+q/3. AC(q)=1/3q+q2/3. AC(q)=5/q+q2/9.

Question 32 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 cost of producing q units is? AC(q)=10/q+q2. AC(q)=3/q+q/9. AC(q)=2/3q+q/3. AC(q)=1/3q+q2/3. AC(q)=5/q+q2/9.

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Question

Question 32
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 cost of producing q units is?

AC(q)=10/q+q2.

AC(q)=3/q+q/9.

AC(q)=2/3q+q/3.

AC(q)=1/3q+q2/3.

AC(q)=5/q+q2/9.

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