Question: The production function for a firm is Q = 24L5K5. In the short run, the firm has a fixed amount of capital, K = 121.

The production function for a firm is Q = 24L5K5. In the short run, the firm has a fixed amount of capital, K = 121. The price of labor is $10 per unit, and the price of capital is $20 per unit.

a. The short-run production function is Q5 = ___________.

b. The marginal product of labor is MPL = ___________. Show that the marginal product of labor diminishes for all levels of labor usage.

c. Write the equation for the short-run expansion path.

d. Derive the short-run TVC, TFC, and TC functions.

e. Derive SMC, AVC, ATC, and AFC.

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