For the short-run production function in exercise 1, let the wage be $20. a. Derive AVC (Q).
Question:
a. Derive AVC (Q).
b. When 160 units are produced, _______ units of labor are employed, and the average product is __________. Average variable cost is $__________.
c. Derive SMC (Q).
d. Using the marginal product (MP) function derived in part c , the marginal product is _______ when 160 units are produced. SMC is $_________. Verify that SMC (Q) evaluated at Q = 4 is identical to calculating SMC by using the ratio w/MP .
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a AVC AVC Q TVCQ 20LQ Solving for L in the production function L LQ ...View the full answer
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Related Book For 
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021718
11th edition
Authors: Christopher Thomas, S. Charles Maurice
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