A firm has a Cobb-Douglas production function, q = 2L0.5K0.5. If it faces factor prices of w
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A firm has a Cobb-Douglas production function, q = 2L0.5K0.5. If it faces factor prices of w = 20 and r = 40 and its capital is fixed at K = 100, what are its short-run average fixed cost, average variable cost, and marginal cost functions? Plot these curves.
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knowing that function of production Wage rate w 20 and r 40 Cost wLrK or Cost 20L40K 2 in the short ...View the full answer
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Related Book For 
Managerial Economics And Strategy
ISBN: 9780134899701
3rd Edition
Authors: Jeffrey M. Perloff, James A. Brander
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