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Suppose a firm's production function is: q = √KL. Assume capital is fixed at 4 units, and the rental rate on capital is 10 and the wage rate is 8. Which of these represents the firm's total cost equation (expressed as a function of q)? O TC = 2q² + 32 O TC = 2q² + 40 O TC = 2q0.5 + 40 O TC = 4q² + 40 none of the above

Suppose a firm's production function is: q = √KL. Assume capital is fixed at 4 units, and the rental rate on capital is 10 and the wage rate is 8. Which of these represents the firm's total cost equation (expressed as a function of q)? O TC = 2q² + 32 O TC = 2q² + 40 O TC = 2q0.5 + 40 O TC = 4q² + 40 none of the above

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.3P
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Question 8 2 points Suppose a firm's production function is: q = √KL. Assume capital is fixed at 4 units, and the rental rate on capital is 10 and the wage rate is 8. Which of these represents the firm's total cost equation (expressed as a function of q)? O TC = 2q² + 32 O TC = 2q² + 40 O TC = 2q0.5 + 40 O TC = 4q² + 40 O none of the above Save Answer
Transcribed Image Text:Question 8 2 points Suppose a firm's production function is: q = √KL. Assume capital is fixed at 4 units, and the rental rate on capital is 10 and the wage rate is 8. Which of these represents the firm's total cost equation (expressed as a function of q)? O TC = 2q² + 32 O TC = 2q² + 40 O TC = 2q0.5 + 40 O TC = 4q² + 40 O none of the above Save Answer
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