Suppose that the production function for your firm is given by: F(L,K) = L ^(1/4) K^(1/2) . w=2 and r=4.

In the long-run, how many workers and capital should you hire in order to produce Q units of output?

a. L*=Q, K*=Q

b. L*= Q^3 , K*= Q^3

c. L*= Q^3/4, K*= Q^3/4

d. L*= Q^4/3, K*= Q^4/3

If the firm has a fixed cost of $100, what is the total cost function?

a. TC(Q)= 100+6Q^4/3

b. TC(Q)= 100+6Q^3/4

c. TC(Q)= 100+6Q^3

d. TC(Q)= 100+6Q

14. What is the average variable cost function?

a. AVC(Q)= 6Q^4/3

b. AVC(Q)= 6

c. AVC(Q)= 6Q^2

d. AVC(Q)= 6Q^1/3