Suppose q = f(L,K) =2L¹/2What is the marginal cost in the long-run of the firm?O MCLR(q) = q4/2MCLR(q) = q2 / 4O MCLR(q) = q /4O MCLR(q) = 8q³/3O MCLR(q) = 4q²/2+2K1/2 and the prices or labor and capital are w=$1, r=$1.

Cost minimization problem of producer: For the given output level the firm and per unit cost of…

Suppose q = f(L,K) =2L¹/2 + 2K¹/2 and the prices or labor and capital are w=$1, r=$1. What is the marginal cost in the long-run of the firm? O MCLR(q) = q4/2 MCLR(q) = q2 / 4 O MCLR(q) = q/4 O MCLR(q) = 8q3³/3

Suppose q = f(L,K) =2L¹/2 + 2K¹/2 and the prices or labor and capital are w=$1, r=$1. What is the marginal cost in the long-run of the firm? O MCLR(q) = q4/2 MCLR(q) = q2 / 4 O MCLR(q) = q/4 O MCLR(q) = 8q3³/3

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Problem 1QTC

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Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

Question

Suppose q = f(L,K) =2L¹/2
What is the marginal cost in the long-run of the firm?
O MCLR(q) = q4/2
MCLR(q) = q2 / 4
O MCLR(q) = q /4
O MCLR(q) = 8q³/3
O MCLR(q) = 4q²/2
+
2K1/2 and the prices or labor and capital are w=$1, r=$1.

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Month (m): 4 Day (d): 1 Use the two numbers above, m and d, to complete the cost function for a perfectly competitive firm: Cost (q) = m q2 + d = (30) For a cost function like yours, Marginal Cost (MC) = 2 m q . Specifically, what are the following for the cost function you wrote out above? Fixed Cost = Average Total Cost = Cost (q)/q = Variable Cost = Average Fixed Cost = FC/q = Marginal Cost = 2 m q = Average Variable Cost = VC/q = (15) Fill in the table with your values from your cost function. q Total Cost AVC AFC ATC MC 0 0 0 -- -- -- 1 2 3 4 5 6
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