Question
Suppose a firm has a production function given by Q = LK, w = 16, r = 25 a) Find the firm's total cost
Suppose a firm has a production function given by Q = LK, w = 16, r = 25 a) Find the firm's total cost function and marginal cost, assuming that there are no fixed costs. b) Does the firm exhibit increasing, decreasing, or constant returns to scale? c) Assume that the firm faces a demand of P = 100 - Q. Find the profit-maximizing price and quantity. d) What is the amount of profit at the profit-maximizing quantity?
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
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