Compute its short-run marginal cost function

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A firm production function is given by q = f(k,l) = k·^l1/2. w = $20, v = $5. Consider a short-run situation where the level of capital is fixed at k₁ = 10. At p = $12, in the short-run, what is the quantity supplied by this price-taking firm? (NOTE: write your answer in number format, with 2 decimal places of precision level; do not write your answer as a fraction. HINTS: First, derive this firm short-run total cost function. Next, compute its short-run marginal cost function. Finally, use the short-run profit maximization rule to derive its short-run supply equation. Show all steps.

Reference no: EM131004994

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