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

Demand for risky assets, Demand for Risky Assets *  Assets - Somethi...

Demand for Risky Assets *  Assets - Something which provides a flow of money or services to its owner. -  The flow of money or services can be explicit or implicit . *

Narrowness of definition of the commodity, Explain why each of the followin...

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the commodi

Law of diminishing marginal utility, law of diminishing marginal utility it...

law of diminishing marginal utility its assumptions, limitation, and its practical importance

Change in the population of consumers, Change in the population of consumer...

Change in the population of consumers: Population changes may affect the demand for a commodity.Areas of high population may demand more of certain commodities than areas of low

find the equilibrium quantity and demand curve, Consider a non-renewable r...

Consider a non-renewable resource. There are two periods, now and later. The demand curve in each period (t = 1, 2) is Qt = 10 - Pt. The stock of the resource is 10 units. Extracti

Production function, A competitive firm produces output using three fixed f...

A competitive firm produces output using three fixed factors and one variable factor. The firm’s short-run production function is q = 154x – 5x2, where x is the amount of variable

Consumer equlbrim, how can a consumer get maximum Equlbrim

how can a consumer get maximum Equlbrim

Elasticity of demand , The Bushman Cinema is the only movie theatre locate...

The Bushman Cinema is the only movie theatre located in the medium-size country town of Sleepy Hollow.  The owner wants to charge an admission fee of $10 per seat and past experien

Explain how the price system eliminates a surplus, Explain how the price sy...

Explain how the price system eliminates a surplus. The meaning of surplus is that quantity demanded is less as compared to the quantity supplied.  This will lead to downward pr

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