Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function Q = F(L, K) Q = 10L0.5 K0.5 where L is their number of workers and K is units of capital. The wage rate is $1,000 per week and a unit of capital costs $250 per week. Suppose that when initially producing 100 square feet a week, they use 20 units of capital. a. What is their short-run cost of remodeling 400 square feet per week? Instructions: Enter your answer as a whole number.
Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function Q = F(L, K) Q = 10L0.5 K0.5 where L is their number of workers and K is units of capital. The wage rate is $1,000 per week and a unit of capital costs $250 per week. Suppose that when initially producing 100 square feet a week, they use 20 units of capital. a. What is their short-run cost of remodeling 400 square feet per week? Instructions: Enter your answer as a whole number.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 9TY
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Typed and correct answer please. I ll rate
![Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is
described by the Cobb-Douglas production function
Q = F(L, K)
Q = 10L0.5 K0.5,
where L is their number of workers and K is units of capital. The wage rate is $1,000 per week and a unit of capital costs $250 per
week. Suppose that when initially producing 100 square feet a week, they use 20 units of capital.
a. What is their short-run cost of remodeling 400 square feet per week?
Instructions: Enter your answer as a whole number.
b. What is their long-run cost of remodeling 400 square feet per week?
Instructions: Enter your answer as a whole number.
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32c47c85-ee30-4923-8473-80da4424ffba%2Fec23c62c-f61c-47a0-9b90-f40b0aba7a93%2F280x51v_processed.png&w=3840&q=75)
Transcribed Image Text:Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is
described by the Cobb-Douglas production function
Q = F(L, K)
Q = 10L0.5 K0.5,
where L is their number of workers and K is units of capital. The wage rate is $1,000 per week and a unit of capital costs $250 per
week. Suppose that when initially producing 100 square feet a week, they use 20 units of capital.
a. What is their short-run cost of remodeling 400 square feet per week?
Instructions: Enter your answer as a whole number.
b. What is their long-run cost of remodeling 400 square feet per week?
Instructions: Enter your answer as a whole number.
%24
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