Multiple Choice
Suppose that a firm uses both labour (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 5?L?K. If the firm has 100 units of capital, what is its short-run production function?
A) Q=F(K) =50?K
B) Q = F(L) = 500?L
C) Q = F(L,K) = 50?L?K
D) Q=F(L) =50?L
Correct Answer:
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