Homework Help is Here – Start Your Trial Now!
Business
Economics
production function when K is fixed at 6000 units. Recall that 9 = 0.02KL0.5 and r = .05 and w = 45. Calculate your SR production function (round any numbers to 4 decimal places). Q=.02K^.5L^.5 q=.02(6000)^.5L^.5 q= (1.5491L^.5)^2 Q = 2.4L Calculate your FC. FC = (0.05) (6000) = 300 I Derive the equation for your VC (as a function of q) Q=2.4L L =f(Q) = L = (Q/2.4) VC=WL = VC = 45(L) = 45(Q/2.4) = 18.75Q Derive the equation for your TC (as a function of q) TC 18.75Q + 450

production function when K is fixed at 6000 units. Recall that 9 = 0.02KL0.5 and r = .05 and w = 45. Calculate your SR production function (round any numbers to 4 decimal places). Q=.02K^.5L^.5 q=.02(6000)^.5L^.5 q= (1.5491L^.5)^2 Q = 2.4L Calculate your FC. FC = (0.05) (6000) = 300 I Derive the equation for your VC (as a function of q) Q=2.4L L =f(Q) = L = (Q/2.4) VC=WL = VC = 45(L) = 45(Q/2.4) = 18.75Q Derive the equation for your TC (as a function of q) TC 18.75Q + 450

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
100%

Im so confused what I am doing wrong I need help.

production function when K is fixed at 6000 units. Recall that 9 = 0.02KL5 and r = .05 and w = 45. Calculate your SR production function (round any numbers to 4 decimal places). Q = .02K^.5L^.5 q = .02(6000)^.5L^.5 q = (1.5491L^.5)^2 Q = 2.4L Calculate your FC. FC = (0.05) (6000) = 300 I Derive the equation for your VC (as a function of q) Q = 2.4L L =f(Q) = L = (Q/2.4) VC = WL = VC = 45(L) = 45(Q/2.4) = 18.75Q Derive the equation for your TC (as a function of q) TC 18.750 + 450
Transcribed Image Text:production function when K is fixed at 6000 units. Recall that 9 = 0.02KL5 and r = .05 and w = 45. Calculate your SR production function (round any numbers to 4 decimal places). Q = .02K^.5L^.5 q = .02(6000)^.5L^.5 q = (1.5491L^.5)^2 Q = 2.4L Calculate your FC. FC = (0.05) (6000) = 300 I Derive the equation for your VC (as a function of q) Q = 2.4L L =f(Q) = L = (Q/2.4) VC = WL = VC = 45(L) = 45(Q/2.4) = 18.75Q Derive the equation for your TC (as a function of q) TC 18.750 + 450
Expert Solution
steps

Step by step

Solved in 6 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Returns to scale
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS