Suppose a production function for a firm takes the following algebraic form: Q= 2KL - (0.3)L², where Q is the output of sweaters per day. Now suppose the firm is operating with 10units of capital (K = 10) and 6 units of labour (L = 6). What is the output of sweaters?A. 64 sweaters per dayOB. 49 sweaters per dayOC. 109 sweaters per dayOD. 72 sweaters per dayOE. 118 sweaters per day

To find the output of sweaters, we need to substitute the given values of K and L into the…

Answered: Suppose a production function for a…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 13RQ: What is the difference between a fixed input and a variable input?

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Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
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