1 The demand for an input is: a. the VMP of the input. b. derived from input owner's profit-maximizing condition. c determined by MP =W. d. sloping upward. 2 Suppose that production for good X is characterized by the following production function, Q = K5L05, where Kis the fixed input in the short run. If the per-unit rental rate of capital, r, is $25 and the per-unit wage, w, is $15, then the fixed cost of using 81 units of capital and 9 units of labor is: a. $135. b. $2,025. c There is insufficient information to determine the fixed costs. d. $2,160.

1 The demand for an input is: a. the VMP of the input. b. derived from input owner's profit-maximizing condition. c determined by MP =W. d. sloping upward. 2 Suppose that production for good X is characterized by the following production function, Q = K5L05, where Kis the fixed input in the short run. If the per-unit rental rate of capital, r, is $25 and the per-unit wage, w, is $15, then the fixed cost of using 81 units of capital and 9 units of labor is: a. $135. b. $2,025. c There is insufficient information to determine the fixed costs. d. $2,160.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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