Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4CQQ
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Question
![Bob's production function is Q = f(x,y), where x = quantity of labor and y = quantity of land used in the production process. Bob has a 1 year lease on 1 acres of land. In the short run, Bob's average
total cost of production will be
O A. Equal to his long run average cost of production
O B. Greater than his long run average cost of production
O . Less than his long run average cost of production
O D. Either A or B could be correct](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8aae919-ec6b-4cbe-89b8-ab89e1965834%2F7d6af8e9-3db9-47c5-a010-a90a15fcfc9a%2F7yx6xzd_processed.png&w=3840&q=75)
Transcribed Image Text:Bob's production function is Q = f(x,y), where x = quantity of labor and y = quantity of land used in the production process. Bob has a 1 year lease on 1 acres of land. In the short run, Bob's average
total cost of production will be
O A. Equal to his long run average cost of production
O B. Greater than his long run average cost of production
O . Less than his long run average cost of production
O D. Either A or B could be correct
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