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

Marginal Revenue, (i) When the demand function is 2Q - 24 + 3P = 0, find th...

(i) When the demand function is 2Q - 24 + 3P = 0, find the marginal revenue when Q=3. (ii) Given the demand function 0.1Q - 10 +0.2P + 0.02P2 =0, calculate the price elasticity of

How to manufactured capital and natural capital, What two measures have bee...

What two measures have been developed in recent years that subtract for the depreciation of both manufactured capital and natural capital? The environmentally adjusted Net Dome

Joint equilibrium quantity, The sole producer of the anti-diarrhea drug STO...

The sole producer of the anti-diarrhea drug STOP supplies two retail pharmacies in an isolated village. The two pharmacies compete à la Cournot in a market characterized by an inve

Gdp price level, GDP Price Level At the equilibrium level of income agg...

GDP Price Level At the equilibrium level of income aggregate spending in the economy equals aggregate output. All along, we have assumed that the general price level remains un

Role of managers, Managers: Top directors and managers of larger companies ...

Managers: Top directors and managers of larger companies who are assigned the task of organizing disciplining workers, initiating production and accounting to shareholders for perf

Compensated demand curve, Compensated Demand Curve: Compensated demand...

Compensated Demand Curve: Compensated demand function for a commodity (say x1) of an individual consumer represents demand quantity for that good (which is purchased by the co

Explain the factors which would affect the price of a good, Explain the fac...

Explain the factors which would affect the price of a good. As there is a very long list of determinants, the basic issue is for the student to describe and illustrate how shif

Cost analysis, What is cost analysis? Cost–benefit analysis known as CBA, s...

What is cost analysis? Cost–benefit analysis known as CBA, sometimes known as benefit–cost analysis BCA, is a systematic process of calculating & comparing profit and costs of a pr

Production function and returns to factors, what is the law of diminishing ...

what is the law of diminishing marginal product? explanation with the help of proper schedule and diagram.

What is the equilibrium quantity?, Supply and demand for a given type of MP...

Supply and demand for a given type of MP3 player are given by the following equations: P=980-1.5Qd P=20+0.9Qs

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