7. The production function is given by: Q = 50K^1/2 L^1/2

w = $5; r = $10

a. find the long run TC, AC, and MC functions, of producing 10,000 units and graph them.

b.Find the short run cost functions based on the level of capital that you found in (a).

c. The firm has now decided that it wants to produce 12,000 units of output,

1. Assuming that capital is fixed at the level you chose in a., what will the firm do in the short run?

What will it cost to produce the 12,000 units?

2. What will it cost to produce this in the long run, and what is the cost-minimizing input choice?

d.Show graphically what you have found in parts a and b of this problem on an isoquant map AND

on the cost curve diagram. Be sure to show both short run and long run cost functions, and to explain

what is happening with the firm.