Q = (5k^.3)(L^.6)

1 .(6 points) Consider the production function Q =5K-L This firm faces a wage of $10/unit and a rental price of capital of $30/unit. Show that fe 0 , [1 0, fu:0. ILL 0 b) Derive the total cost function, the marginal cost function, and the average cost function for this firm when both capital and labor are variable. What is the equation of the supply curve of this firm in the long-run c) Derive the total cust function, the marginal cost function, and the average cost function for this firm when capital is fixed at 2 units. At what quantity does MC-AC in the short-run? What is the equation of the supply curve of this firm in the short-run? d) At what values are the MC and AC for the short-run function in part c) equal to the long run function in part hj