Explain the production function

Reference no: EM131444154

Question: Short run total cost function (8 points). Suppose the production function for Donut Friend donuts is given by Q(K, L) = K + 2L The workers at Donut Friend are paid a wage of $20 per hour and a unit of capital can be rented for $50 per hour.

(a) (4 points) In the short run, Donut Friend's capital is fixed at K = 20. Find the firm's short run total cost function, T CSR(Q) when Q = 20.

(b) (4 points) In the short run, Donut Friend's capital is fixed at K = 20. Find the firm's short run total cost function, T CSR(Q) when Q < 20.

Reference no: EM131444154

Questions Cloud

Which curves shift and which do not : Cost curves, graphically (8 points). GLS Ch 7, P10. Daniel's Midland Archers (DMA) makes children's wooden practice arrows. Draw a set of representative short-run cost curves for DMA.

What is the present value of a series of payments : 1. What is the present value of a series of payments of $2000 every four years in perpetuity with the first payment made immediately, if the annual rate is 9% per annum?

What is martins short run marginal cost function : Short run cost functions (11 points). Martin Marvel publishes comic books. The only inputs he needs are superhero character ideas (S) and hours of cartoonists' labor (L).

Effective annual yield on the debentures : Polycorp debentures are selling for $104 (FV = 100) and mature in ten years. The coupon rate is 6% pa, with coupons paid quarterly. What is the effective annual yield on the debentures?

Explain the production function : Short run total cost function (8 points). Suppose the production function for Donut Friend donuts is given by Q(K, L) = K + 2L The workers at Donut Friend are paid a wage of $20 per hour and a unit of capital can be rented for $50 per hour.

Identify the important points in the paper : The outline will be a set of headings or sections that identify the important points in the paper. You can develop these points at two levels, similar to headings and subheadings.

Explain what is counted in this year gdp : 1) If Max receives an unemployment check, would you include that transfer payment from the government in this year's GDP? Why or why not? 2) In the following situations, explain what is counted in this year's GDP.

Explain the difference between wealth and money : 1: Explain the difference between wealth and money? 2: What is the difference between Fiat and Commodity Money? 3: Why are regulations so stringent, especially for new banks?

Create a graph of diminishing utility : The new Spooky Tooth album just can out. You have listened to it five times today and experienced the units of utility shown below.

User Account

All Pages