A firm’s production function is given by Q = KL, where MPL = K and MPK = L

QUESTION

A firm’s production function is given by Q = KL, where MPL = K and MPK = L. The wage rate (W) = $50 and the rental rate per unit of capital (R) is $12.50. In the short run, capital (K) is fixed at 10 units. The short-run average total cost of producing 100 units of output is ______, and the long-run average total cost of producing 100 units of output is ______.A.$14.75; $9B.$14.75; $8.80C.$6.25; $4.20D.$6.25; $5

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