Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Andy needs to hire workers and use ovens to cook and serve pizzas. The number of ovens Dan owns is fixed to be 4. The
Andy needs to hire workers and use ovens to cook and serve pizzas. The number of ovens
Dan owns is fixed to be 4. The short-run production function is F(L)=40L^1/2
where L is the total number of hours of labor input per day. Suppose the cost of labor is $10 per hour
and the cost of each oven is $40 per day.
(a)
What is the total number of hours of labor needed to produce Q pizzas?
(b)
What is the fixed cost of cooking and serving Q pizzas?
(c)
What is the variable cost of cooking and serving Q pizzas?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started