Answer questions 5-7 based on the following information: Suppose that the production function for your firm is given by: F(L, K) = LiKz. w=2 and r=4. 11
Answer questions 5-7 based on the following information: Suppose that the production function for your firm is given by: F(L, K) = LiKz. w=2 and r=4. 11
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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V1
![Answer questions 5-7 based on the following information:
Suppose that the production function for your firm is given by: F(L, K) = LiKz. w=2 and r=4.
11](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84d51d58-cb5b-47c3-a19f-f950964bd9fd%2F0f0c2fa2-ebd0-4a66-bdba-cf76932e8926%2Fsmwifer3_processed.png&w=3840&q=75)
Transcribed Image Text:Answer questions 5-7 based on the following information:
Suppose that the production function for your firm is given by: F(L, K) = LiKz. w=2 and r=4.
11
![6. If the firm has a fixed cost of $100, what is the total cost function and the average variable cost
function?
a. TC= 100+6Q4/3; AVC=6Q¹/3
b. TC= 100+6Q3/4; AVC=6Q3/4
c. TC= 100+6Q³; AVC=6Q²
d. TC= 100+6Q; AVC=6Q](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84d51d58-cb5b-47c3-a19f-f950964bd9fd%2F0f0c2fa2-ebd0-4a66-bdba-cf76932e8926%2Fre6rggn_processed.png&w=3840&q=75)
Transcribed Image Text:6. If the firm has a fixed cost of $100, what is the total cost function and the average variable cost
function?
a. TC= 100+6Q4/3; AVC=6Q¹/3
b. TC= 100+6Q3/4; AVC=6Q3/4
c. TC= 100+6Q³; AVC=6Q²
d. TC= 100+6Q; AVC=6Q
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