1. A firm has a production function of Q = 0.25KL 0.5 , the rental rate of...
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1. A firm has a production function of Q = 0.25KL 0.5 , the rental rate of capital is $100, and the wage rate is $25. In the short run, K− − is fixed at 100 units.
a. What is the short-run production function?
b. What is the short-run demand for labor?
c. What are the firm’s short-run total cost and short-run marginal cost?
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Related Book For
Microeconomics
ISBN: 9780716759751
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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