2 Suppose that production for good X is characterized by the following production function, O= K005 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 foxed 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 foxed costs. d. $2.160.

2 Suppose that production for good X is characterized by the following production function, O= K005 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 foxed 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 foxed 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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University level intermediate microeconomics, theory of production