Question: Consider the following set-up: A firm has production function given by -1/2 Q = F(K, L) = AK /2/2 where A> 0 is a

Consider the following set-up: A firm has production function given by -1/2 Q = F(K, L) = AK /2/2 where A> 0 is a constant. Wages are equal to w. In the short run, if technology improves and increases A a small amount (i.e. a calculus-like change) then the marginal change in variable costs at every Q will O Decrease by 20 KA Decrease by w O Increase by w O Increase by 20 KA 20 20 KA

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