Question: For the next a few questions, the setup is as followed: NBC network executive Jack Donaghy decides to ask Liz Lemon and the entire crew
For the next a few questions, the setup is as followed:
NBC network executive Jack Donaghy decides to ask Liz Lemon and the entire crew of TGS to have a special live performance to celebrate Christmas. The crew needs to build an entire set in the studio, and the number of seats they can provide is determined by the amount of capital and the amount of labor put into the production:
Here we ignore the unit of each variable to make calculation easier.
The labor wage and capital rental rate The cost of hiring the actors, which is independent of the cost of building the set, is
Suppose the TGS crew can freely choose the inputs. The total cost function with respect to is
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