(1) In the short run, marginal cost is minimized when A. APL is maximized. B. MP
ID: 1191545 • Letter: #
Question
(1) In the short run, marginal cost is minimized when
A. APL is maximized.
B. MPL equals zero.
C. APL equals zero.
D. MPL is maximized.
(2) If average cost is decreasing,
marginal cost exceeds average cost.
marginal cost is less than average cost
marginal cost equals average cost.
D.
(3) A firm produces output according to the production function, q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. What is the minimum cost of producing 1140 units of output?
Cost = $2,071.
Cost = $780.
Cost = $694
Not enough information is given to answer this problem.
A.marginal cost exceeds average cost.
B.marginal cost is less than average cost
C.marginal cost equals average cost.
D.
(3) A firm produces output according to the production function, q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. What is the minimum cost of producing 1140 units of output?
A.Cost = $2,071.
B.Cost = $780.
C.Cost = $694
D.Not enough information is given to answer this problem.
Explanation / Answer
Ans 1 - MPL is maximized
Ans 2 - marginal cost equals average cost.
Ans 3 - $2071
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