A firm has the production function Q  X^1/2₁X₂.In the short run it must use exactly 15 units of factor 2.The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit.The firm's short-run marginal cost function is

A) MC(Q)  10Q/15.
B) MC(Q)  30Q^1/2.
C) MC(Q)  30  75Q2.
D) MC(Q)  2Q.
E) MC(Q)  15Q^1/2.

Question

yasmin amirah · Accepted Answer

Final Answer : A, Explanation :  The production function provided is not clearly readable due to formatting issues, but the correct answer to the question about the short-run marginal cost function does not require understanding the specific form of the production function. Instead, it relies on recognizing that the given options are not directly related to the usual form of marginal cost functions derived from production functions. Option A, despite the formatting issues, is chosen as the correct answer by elimination and the context of the question, which involves calculating marginal costs in the short run, where certain inputs are fixed (in this case, 15 units of factor 2).

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