1. Consider a firm which produces according to the following production function by using labor and...

 


 

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1. Consider a firm which produces according to the following production function by using labor and capital: f (k,l) = min (5k, 101) a. Find firm's long run total cost function given that price of capital is v and price of labor is w. b. Find marginal cost and average cost functions and draw them on a graph. 2. Consider a firm in the short run. Its fixed costs are FC=$4000. Its marginal cost function is given by MC(q) = 20q2 - 15q + 1. Find firm's cost function. I 3. Consider the following production function q = (0.5+10.5)2 a. Does this function exhibit increasing, decreasing or constant returns to scale? Explain. b. Suppose that capital is equal to 16 units in the short-run. Find the short run cost function for this producer for given wage rate w and price of capital v. 1. Consider a firm which produces according to the following production function by using labor and capital: f (k,l) = min (5k, 101) a. Find firm's long run total cost function given that price of capital is v and price of labor is w. b. Find marginal cost and average cost functions and draw them on a graph. 2. Consider a firm in the short run. Its fixed costs are FC=$4000. Its marginal cost function is given by MC(q) = 20q2 - 15q + 1. Find firm's cost function. I 3. Consider the following production function q = (0.5+10.5)2 a. Does this function exhibit increasing, decreasing or constant returns to scale? Explain. b. Suppose that capital is equal to 16 units in the short-run. Find the short run cost function for this producer for given wage rate w and price of capital v.

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1 a Firms Long Run Total Cost Function Given the production function fkl min5k 10l The firms objective is to minimize the total cost of production whi... View the full answer