What is the cost of producing q output in the short-run

Assignment Help Econometrics

Reference no: EM13207709

A firm has production function f(K; L) = squarerootKL. In the short run, the rm has capital K = 400; this cannot be changed in the near future. The cost of a unit of capital is $20, while the cost of a unit of labor is $30.

a. In the short-run, where capital is xed at K = 400, how much labor does the rm need to employ in order to produce q = 300 output? What is the cost of producing 300 output?

b. Repeat part a for q = 400, q = 500 and q = 600.

c. What is the cost of producing q output in the short-run?

d. What is the marginal cost of producing a 301s unit? A 401st unit? If you are comfortable doing so, you may answer this question by writing down the marginal cost function directly, rather than recalculating total cost for q = 301 and q = 401.

e. Given your answer to part c, draw a graph with the rm's average total cost, average variable cost, and marginal cost (hint: MC = Q(3/20) )

Reference no: EM13207709

Questions Cloud

What is effect of packing factor in self compacting concrete : what is effect of packing factor in self compacting concrete?

State the reaction with the greatest equilibrium constant : entropies of atom combination to determine if any of the following reactions have an equilibrium constant greater than 1. Find the reaction with the greatest equilibrium constant. Find the reaction with the smallest equilibrium constant.

Article about tropical deforestation : In the article about tropical deforestation, road-building into the Amazon is an example of which kind of driving force?

What is the corresponding horizontal distance : A runs slope a distance of 156.777 m from one point to another point at a rate of +1.5%. What is the corresponding horizontal distance between the points?

What is the cost of producing q output in the short-run : What is the marginal cost of producing a 301s unit A 401st unit If you are comfortable doing so, you may answer this question by writing down the marginal cost function directly, rather than recalculating total cost for q = 301 and q = 401.

Determine the net rate of flow of linear momentum : Determine the net rate of flow of linear momentum through the control surface.

What is the corrected measurement : A measurement was recorded as 171.278 m with a 30-m tape that was only 29.996 m under standard conditions. What is the corrected measurement?

What fraction of the herbicide is adsorbed : The herbicide 2,4,D, is applied to a golf course at a rate of 1.2 kg/ha. The organic matter content of the soil is 1%, bulk density is 1.3 g/cm3, and water content is 0.3.

Compute the specific rotation of the compound : An aqueous solution containing 9.47 g of an optically pure compound was diluted to 200.0 mL with water and placed in a polarimeter tube 20.0 cm long.

User Account

All Pages