For what price does the firm make positive profit

Reference no: EM13192686

The ABC corporation produces typewriters according to the production
function Q = K^(1/2) L^(1/2) .

Its capital stock is fixed at K = 100 in the short run, the rental
rate on capital is r = 1 and the wage rate is w = 10.

(a) Derive the firm's short run total cost function.

(b) Derive the firm's short run marginal cost, average total cost, average variable cost, and average fixed cost

(d) Suppose that the price of typewriters is p = $20. How many typewriters should the firm produce to maximize profit? What is the firm's profit at this price?

(e) For what price does the firm make positive profit?

Reference no: EM13192686

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