production function given by:
๐ = 2 โ๐๐
In the short run, the firmโs amount of capital equipment is
fixed at k = 100. The rental
rate for k is v=$1, and the wage rate for
l is w=$4.
(a) Calculate the firmโs short-run total cost curve. Calculate
the short-run average cost
curve. (5 marks)
(b) What is the firmโs short-run marginal cost function? What
are the SC, SAC, and SMC
for the firm if it produces 25, 50, 100 and 200 hockey sticks?
(5 marks)
(c) Where does the SMC curve intersect the SAC curve? Explain
why the SMC curve will
always intersect the SAC curve at its lowest point. (5
marks)
- 2 A Firm Producing Hockey Sticks Has A Production Function Given By Q 2 Kl In The Short Run The Firm S Amount Of C 1 (47.64 KiB) Viewed 51 times