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What is the cost of producing 10 units in the short run

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Reference no: EM13337807

Suppose the following equations are true:

Production Function: Q = K1/3L2/3,

which means MPK = 1/3K-2/3L2/3,

MPL = 2/3K1/3L-1/3

MRTS = 2(K/L)

Total Cost = rK + wL

r = .2

w = $5

A) Currently, K = 100. What is the cost of producing 10 units in the short run? Hint: first determine how much labor is needed.

Reference no: EM13337807

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