Suppose that a firm's fixed proportion production function is given by q= min(5k, 10L) a.Calculate the firm's long-run total, average, and marginal cost functions. b. Suppose that k is fixed at 10 in the short run. Calculate the firm's short-run total, average, and marginal cost functions. c. Suppose v= 1 and w= 3. Calculate this firm's long-run and short-run average and marginal cost curves.
Suppose that a firm's fixed proportion production function is given by q= min(5k, 10L) a.Calculate the firm's long-run total, average, and marginal cost functions. b. Suppose that k is fixed at 10 in the short run. Calculate the firm's short-run total, average, and marginal cost functions. c. Suppose v= 1 and w= 3. Calculate this firm's long-run and short-run average and marginal cost curves.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that a firm's fixed proportion production function is given by
q= min(5k, 10L)
a.Calculate the firm's long-run total, average, and marginal cost functions.
b. Suppose that k is fixed at 10 in the short run. Calculate the firm's short-run total, average, and marginal cost functions.
c. Suppose v= 1 and w= 3. Calculate this firm's long-run and short-run average and marginal cost curves.
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