= Q5. A firm has the following fixed proportion production function q min(k, 21). a. Find the firms long-run total, average, and marginal cost functions. b. Suppose that k is fixed at 30 in the short run. Calculate the firms short-run total, average, and marginal cost functions. c. Suppose v = 1 and w = 3. Calculate this firms long-run and short-run average and marginal cost curves.

= Q5. A firm has the following fixed proportion production function q min(k, 21). a. Find the firms long-run total, average, and marginal cost functions. b. Suppose that k is fixed at 30 in the short run. Calculate the firms short-run total, average, and marginal cost functions. c. Suppose v = 1 and w = 3. Calculate this firms long-run and short-run average and marginal cost curves.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.3P

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Question

=
Q5. A firm has the following fixed proportion production function q
min(k, 21).
a. Find the firms long-run total, average, and marginal cost functions.
b. Suppose that k is fixed at 30 in the short run. Calculate the firms
short-run total, average, and marginal cost functions.
c. Suppose v = = 1 and w = 3. Calculate this firms long-run and short-run
average and marginal cost curves.

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Step 4: Calculate the longrun and the shortrun functions if v is 1 and w is 3

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