Question: Please help me to solve below questions... Juan hasjust started a taco restaurant. In order to enter the business he had to pa).r a sunk

Please help me to solve below questions...

Please help me to solve below questions... Juan hasjust started a tacorestaurant. In order to enter the business he had to pa).r a

Juan hasjust started a taco restaurant. In order to enter the business he had to pa).r a sunk cost of 2, that is, the total value ofthe time he spent learning tacos recipes. In addition he needs to pay for labor and capital. The wage rate he has to pay is i, and the rental rate of each unit of capital is 1.]uan knows that his production function is given by q : KUng. In the short run the units of capital thatJuan has are xed and equal to 3. Find the short run total cost function. (Exclude the sunk costs from this function.) To verify that you have found the correct shortrun total cost function, compute the short-run total cost of producing 30 tacos. TC(30) = Now, let's consider a time horizon long enough such that producers like Juan can adjust the level of capital, although they still have to pay the sunk cost of2 in order to learn the recipes. Assuming that they face the same price for labor [to = i) and for the rental rate of capital [1' = 1], find the long run total cost production function in this market. (Exclude the sunk costs in this function.)To verify that you have found the correct longrun total cost function, compute the longrun total cost of producing 30 tacos. TC(30) =

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