Last week, the Fur Salon signed and pre-paid a one-year leasing contract for 27 machines. Equipment therefore is now a fixed input at the Salon. b) Substitute the number of machines in the Fur Salon’s production function to find the expression The Fur Salon’s Short Run production function qSR(L). c) In the short run, to produce 20 artificial coats, how many units of labor does the Fur Salon need to employ? Explain your reasoning.
Last week, the Fur Salon signed and pre-paid a one-year leasing contract for 27 machines. Equipment therefore is now a fixed input at the Salon.
b) Substitute the number of machines in the Fur Salon’s production function to find the expression The Fur Salon’s Short Run production function qSR(L).
c) In the short run, to produce 20 artificial coats, how many units of labor does the Fur Salon need to employ? Explain your reasoning.
d) What is the expression of the Fur Coat’s short run conditional
Given:
Fur Salon signed and pre-paid a one-year leasing contract for 27 machines.
Equipment is fixed input at the Salon.
Production function = q(L,K) = L2/3K2/3
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