1 The production function of a company is q = 2KO.5 L 0.5 .a) Assuming that capital is equal to 100 units,obtain the short-run production function of thefirm and plot it. b) Obtain the marginal andaverage productivity of labour and graph both.c) Find the amount of work that the companymust hire to obtain the output levels q0 = 25, q1= 100 and q2 = 175. d) Assuming that the priceof capital is r = 1 € and the wage is w = 4 €, findthe short-run total cost function of the firm. e)Calculate the average total cost, averagevariable cost and marginal cost functions of thecompany. Find the level of production thatminimizes the average total cost. Graph andindicate the relationship between average andmarginal costs, as well as the relationshipbetween marginal costs and marginalproductivity of the firm.

Given Production function: q=2K0.5L0.5 .... (1) “Since you have posted a question with…

The production function of a company is q = 2 KO.5 L 0.5. %3D a) Assuming that capital is equal to 100 units, obtain the short-run production function of the firm and plot it. b) Obtain the marginal and average productivity of labour and graph both. c) Find the amount of work that the company must hire to obtain the output levels q0 = 25, q1 %3D