short run, Microeconomics

Assignment Help:
A film studio in Hollywood produces movies according to the function
q = F(K;L) = (2=100)K^0.5L^0.5
In the short run, capital (studios, gear) is xed at a level of 100. It costs $40 (in thousands) to
rent a unit of capital and $10 (in thousands) to hire a unit of labor (actors, stuntmen, camera crew
etc.).
What is the fi xed cost? What is the variable cost as a function of output q?
(b) What is the marginal cost (MC) and the average cost (AC) of a movie? What is the average
variable cost and average fixed cost?

Related Discussions:- short run

Explain change in quantity demanded and a change in demand, Explain the dif...

Explain the difference between a change in quantity demanded and a change in demand. Change in quantity demanded" refers to movement with the demand curve.  For instance, if th

What is marvins optimal bundle, Marvelous Marvin spends his money on muffin...

Marvelous Marvin spends his money on muffins (m) and a composite good (c) (whose price you may assume is $1 throughout this problem). Marvin's utility is U = m + c and his income (

What do you mean by the utility function, What do you mean by the utility f...

What do you mean by the utility function? The Utility Function: Sometimes this is easier to work directly along with the preference relation and its connected sets. Althou

Gdp components, study on internet will impact on gdp

study on internet will impact on gdp

Durability of the commodity, Durability of the Commodity: With some comm...

Durability of the Commodity: With some commodities, we require one at a time and they are used for a very long time before they get spoilt. Examples of such goods are cars, tele

Rent, what do you meant by rent?

what do you meant by rent?

Explain capital adequacy, Q. Explain Capital Adequacy? Capital Adequacy...

Q. Explain Capital Adequacy? Capital Adequacy: Capital adequacy rules are loose regulations which are imposed on private banks, in hope of ensuring that they have adequate inte

Monopolistic competition, Lorie teaches singing.Herr fixed cost are $1000 a...

Lorie teaches singing.Herr fixed cost are $1000 a month,and it costs her $50 of labor to give one class.the table shows the demand schedule for lorie''s singing lessons. Price

How is microeconomics differed from macroeconomics, How is microeconomics d...

How is microeconomics differed from macroeconomics? Microeconomics focuses onto how decisions are made through individuals and firms and the effects of those decisions. For exa

Examine recent developments in demand theory, Critically examine recent dev...

Critically examine recent developments in demand theoryon #Minimum 100 words accepted#

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd