Derive the equation for the firms short-run total cost curve

Reference no: EM13238225

A fi?rm produces a product with labor and capital. Its production function is described by Q = 2L + 3K: Let w and r be the prices of labor and capital,respectively.

(a) Find the equation for the firm's long-run total cost curves as a function of quantity Q, for input prices, w = 1 and r = 1.

(b) Find the equation for the firm's long-run total cost curves as a function of quantity Q and input prices, w and r (and so as a function of three parameters).

c) Find the solution to the firm's short-run cost-minimization problem when capital is fixed at a quantity of 5 units (i.e., K = 5), and w = 1 and r = 1.
Derive the equation for the firm's short-run total cost curve as a function of quantity Q. Graph this curve together with the long-run total cost curve for the same input prices.

Reference no: EM13238225

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