Question
If the production function is Q = L raised to 0.75 * K raised to 0.25, and the price of Labor (w) is 30 and the price of Capital (r) is 10, the cost-minimizing K/L ratio is:
More Microeconomics Section Tests Questions
- The "Output Elasticity of Total Cost" (Ec) is defined as the ratio of Marginal Cost to Average Total Cost (MC/ATC). If Ec < 1, the firm is experiencing:
- Which of the following defines ambient standards in an environmental policy
- A firm’s production function is Q = 10 * L to the power of 0.5 * K to the power of 0.5. If the firm uses 16 units of Labor and 25 units of Capital, what is...
- Which of the following applies to the physical linkage approach for the valuation of environmental benefits
- If the Elasticity of Scale (epsilon) is exactly 1.2 at a specific level of output, a 10% increase in all inputs will lead to:
- The coefficient of regression of Y on X is byx = 1.2 , If A = (X-300)/4 and C = (Y-500)/6 find bCA
- Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sittin...
- A firm should increase investment when :
- Given the Total Cost function TC = 100 + 10Q + 2Q squared, what is the Marginal Cost (MC) when output Q is 5?
- Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sittin...
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
