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Say the Sweetwater Brewery has the following short-run total cost function: 2.5 TCSR = 15%)** + 1600 where Q is level of
Posted: Wed Mar 09, 2022 8:36 am
by answerhappygod
- Say The Sweetwater Brewery Has The Following Short Run Total Cost Function 2 5 Tcsr 15 1600 Where Q Is Level Of 1 (333.17 KiB) Viewed 85 times
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
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)