Question: Suppose the farmer has the following production function: Y = 2X 1/4 where Y is output and X is capital input. Suppose the fixed cost

Suppose the farmer has the following production function:

Y = 2X1/4

where Y is output and X is capital input. Suppose the fixed cost is N$500 and the price of the capital input is N$16.

i. Derive the total cost, marginal and average cost functions

ii. What are the values of the functions derived in (i) when

Y = 100?

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