Question: can you please help solve and graph SAC and SMC 2. A rm producing hockey sticks has a production function given by q = 2m

can you please help solve and graph SAC and SMC

can you please help solve and graph SAC and SMC 2. A

2. A rm producing hockey sticks has a production function given by q = 2m (2) In the short run. the rm's amount of capital equipment is xed at k = 100. The rental rate for k is r m 5, and the wage rate for r = $1, and the wage rate for! is w : $4. (a) Calculate the rm's short-run total cost curve. Calculate the short-run average cost curve. (b) What is the rm's short-run marginal cost function? What are the SC, SAC, and SMC for the rm if it produces 25 hockey sticks? Fifty hockey sticks? One hundred hockey sticks? Two hundred hockey sticks? (c) Graph the SAC and the SMC curves for the rm. Indicate the points found in part (b). (d) Where does the SMC curve intersect the SAC curve? Explain why the SMC curve will always intersect the SAC curve at its lowest point Suppose now that capital used for producing hockey sticks is xed at k1 in the short run. (e) Calculate the rm's total costs as a function of q, to, r, and In. (t) Given q,w,and 1". how should the capital stock be chosen to minimize total cost? (g) Use your results from part (i) to calculate the long-run total cost of hockey stick production. (h) For to = $4. 5* = $1, graph the long-run total cost curve for hockey stick production. Show that this is an envelope for the short-run curves computed in part (e) by examining values of k1 of 100, 200. and 400

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