Touchie MacFeelie’s irascible business manager, Gander Mac- Grope, announces that old jokes can be purchased for $1 each and that the wage rate of cartoonists’ labor is $2.
(a) Suppose that in the short run, Touchie is stuck with exactly 100 old jokes (for which he paid $1 each) but is able to hire as much labor as he wishes. How much labor would he have to hire in order produce Q comic books? ________.
(b) Write down Touchie’s short-run total cost as a function of his output _____________.
(c) His short-run marginal cost function is __________.
(d) His short-run average cost function is __________.