In the short run, the hot dog seller Doug's Dogs has a single variable input, labor (1) W = 50 The price of the labor input is: Doug is a price-taker. The price per case of hot dogs is: P = 100 The total product of labor equation is: TPL = 5L Doug's total fixed costs are: FC = 1000 a. Find the equations of variable cost, total cost, and marginal cost. VC = TC = MC = Find the profit-maximizing output, revenue, cost, and profit. Q* = R*= C* = n*= b.
In the short run, the hot dog seller Doug's Dogs has a single variable input, labor (1) W = 50 The price of the labor input is: Doug is a price-taker. The price per case of hot dogs is: P = 100 The total product of labor equation is: TPL = 5L Doug's total fixed costs are: FC = 1000 a. Find the equations of variable cost, total cost, and marginal cost. VC = TC = MC = Find the profit-maximizing output, revenue, cost, and profit. Q* = R*= C* = n*= b.
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.7P
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Given that it is short run is there a specific method I should follow when solving?
![5. Doug's Dogs
In the short run, the hot dog seller Doug's Dogs has a single variable input, labor (1)
w = 50
The price of the labor input is:
Doug is a price-taker. The price per case of hot dogs is:
P = 100
The total product of labor equation is:
TPL = 5L½
Doug's total fixed costs are:
FC = 1000
a.
Find the equations of variable cost, total cost, and marginal cost.
VC =
TC =
MC =
b.
Find the profit-maximizing output, revenue, cost, and profit.
Q* =
R*=
C* =
N*=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f061069-91e6-48ee-985f-f8d5b158cf5c%2F00cc9a93-9e38-455f-8a0a-969c9a5d2f61%2Fwwyu6j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. Doug's Dogs
In the short run, the hot dog seller Doug's Dogs has a single variable input, labor (1)
w = 50
The price of the labor input is:
Doug is a price-taker. The price per case of hot dogs is:
P = 100
The total product of labor equation is:
TPL = 5L½
Doug's total fixed costs are:
FC = 1000
a.
Find the equations of variable cost, total cost, and marginal cost.
VC =
TC =
MC =
b.
Find the profit-maximizing output, revenue, cost, and profit.
Q* =
R*=
C* =
N*=
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