Question: A rm has a production function de ned as q = KL+L2. The rm faces costs of $10 wage and $1 rental rate of capital

A rm has a production function de ned as q = KL+L2. The rm faces costs of $10 wage and $1 rental rate of capital with $100 in xed costs. Find the cost function, and average total cost, average variable cost, and marginal cost functions

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3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.

4. It is only at this point that you can give the problem your full attention in relation to the various ways you have framed the problem.