Suppose the production function is given by Y= KL, where Y is output per week and...

 

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Suppose the production function is given by Y= √KL, where Y is output per week and L is labor-hours per week. In the short run K is fixed at 100, so the short-run Y = 10√Z production function is If capital rents for $10 each and wages are $5 per week, show that short-run total STC=1000+ 0.05/². costs are (10 marks) b. Given the short-run total cost curve in part (a), how much will the firm produce at a price of $20 per week? (10 marks) Suppose the production function is given by Y= √KL, where Y is output per week and L is labor-hours per week. In the short run K is fixed at 100, so the short-run Y = 10√Z production function is If capital rents for $10 each and wages are $5 per week, show that short-run total STC=1000+ 0.05/². costs are (10 marks) b. Given the short-run total cost curve in part (a), how much will the firm produce at a price of $20 per week? (10 marks)

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