Say the Sweetwater Brewery has the following short-run total cost function: 2.5 TCSR = 15%)** + 1600 where Q is level of
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
Say the Sweetwater Brewery has the following short-run total cost function: 2.5 TCSR = 15%)** + 1600 where Q is level of
questions. a. Derive the equation for the short-run marginal cost curve. (10 pts) b. Now say the firm has the following long-run total cost equation: -.4 TCR = = [100(3)** + 15 (3)"] **01019 Which part of the long-run total cost equation is fixed cost and which part is variable cost? Explain. (5 pts) c. Use the long-run total cost equation in part b. to derive the equation for the long- run marginal cost curve. (10 pts) d. Use the slope of the long-run marginal cost curve to explain how you know that the production function Sweetwater Brewery uses displays decreasing returns to scale. (5 pts)
Say the Sweetwater Brewery has the following short-run total cost function: 2.5 TCSR = 15%)** + 1600 where Q is level of output the firm produces. Use this information to answer the following