Question

The short-run production function of a firm is $Q = 200 + 0.2L^2 -0.0004L^3$. If wage rate equals Rs. 140 and the number of labours (L) is 100, then the Marginal Cost and the Average Variable Cost, respectively, are

• A. 5 and 7.78
• B. 6 and 7.78
• C. 5 and 6.68
• D. 6 and 6.68

Answer 1

Answer: (A)

5 and 7.78

Answer 2

The correct option is (A): 5 and 7.78