Question: Touchie publishes comic books. The only inputs he needs are old jokes and cartoonists. His production function is Q = 0 . 1 J 1
Touchie publishes comic books. The only inputs he needs are old jokes and cartoonists. His production function is Q J L where J is the number of old jokes used, L the number of hours of cartoonists labor used as inputs, and Q is the number of comic books produced. Assume that old jokes can be purchased for $ each and that the wage rate of cartoonists labor is $a Suppose that in the short run, Touchie is stuck with exactly old jokes for which he paid $ each but is able to hire as much labor as he wishes. Write down Touchies shortrun total cost as a function of his output. b What is his shortrun marginal cost function? c What is his shortrun average cost function?
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