State the total variable cost function

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Q=sqrt(KL) or Q=K^(1/2)L^(1/2)

Where Q is output of ice cream, and L is labor hours. In the short-run K is fixed at 100.

If capital rents for $10 and wages are $5 per hour, state the Total Variable Cost (Short Run Total Cost) function.

Suppose the price of ice cream is $20 per gallon a. How many gallons will the firm produce? b. How much labor will the firm hire? e. Suppose the price of ice cream falls to $15 per gallon a. How many gallons will the firm produce? b. How much labor will the firm hire?

Reference no: EM13898317

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