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

Regression methods, This is a very common methods of forecasting demand. Un...

This is a very common methods of forecasting demand. Under this methods a relationship is established between quantity demanded( dependent variable) and independent variables such

Expected value, Expected Value - The weighted average of payoffs or val...

Expected Value - The weighted average of payoffs or values resulting from all the possible outcomes. The probabilities of every outcome are used as weights Expected

Exchange rate, if a country is managing its exchange rate what will do to c...

if a country is managing its exchange rate what will do to counteract the effect of stock market bubble in this country? explain what central bank will do and show in supply and de

The supply function, price quantity 10 60 20 70 30 90 40 110 50 130 der...

price quantity 10 60 20 70 30 90 40 110 50 130 derived a supply function for the relation between price and quantity

Demand and price, examples of quantity demand when prices increase

examples of quantity demand when prices increase

Indifference curve, what are the properties of indifference curve

what are the properties of indifference curve

Supply and demand of coffee and tea, Three factors that determine demand fo...

Three factors that determine demand for coffee and tea

Finding concavity, my q is dat how can we find mathematically dat a product...

my q is dat how can we find mathematically dat a production function is concave?

Economic problems, economic problems are faced by all types of economies bu...

economic problems are faced by all types of economies but they are dealt with differently in different types of economies.discuss

Demand and supply, the demand and supply functions for goods are given by d...

the demand and supply functions for goods are given by demand:Pd=50-3Qds and supply:Ps=14=1.5Qs. where p is the price of a pair of jeans, Q is the number of pairs of jeans a) calc

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