Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here is all of the relevant info. Looking to solve for C(8) in problem PS5.3.3 Kendall Square Inc makes and sells ramen to the large

Here is all of the relevant info. Looking to solve for C(8) in problem PS5.3.3

image text in transcribedimage text in transcribed
Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production function F (K, L) = (K + 2L) . Input prices are w = 2 and r = 3 for labor and capital respectively. It operates in a perfectly competitive environment facing a price p = $48, and uses an initial amount of capital K - 12. Compute the firm's short-run cost function. To verify that you have the correct short-run cost function, calculate the short-run cost of producing 8 units of ramen. C (8) = 536 536 Submit You have used 1 of 2 attempts Save Show answer Problem PS5.3.2 1.0/1.0 point (graded) What is the optimal output level for Kendall Square, Inc in the short run? 4 What are its profits? 7= 104 104 Submit You have used 1 of 2 attempts Save Show answer1/1 point (graded) Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production function F ( K, D) = (K + 21) . Input prices are w - 2 and r = 3 for labor and capital respectively. It operates in a perfectly competitive environment facing a price p = $48, and uses an initial amount of capital K - 12. Compute the firm's short-run cost function. To verify that you have the correct short-run cost function, calculate the short-run cost of producing 8 units of ramen. C(8) = 536 536 Submit You have used 1 of 2 attempts Save Show answer Problem PS5.3.2 1.0/1.0 point (graded) What is the optimal output level for Kendall Square, Inc in the short run? 4 4 What are its profits? 7= 104 104 Submit You have used 1 of 2 attempts Save Show answer Problem PS5.3.3 1 point possible (graded) Compute Kendall Square Inc's long-run cost function. To verify that you have the correct long-run cost function, calculate the long-run cost of producing 8 units of ramen. C (8) =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

China's Air Pollution Problems

Authors: Claudio O Delang

1st Edition

1317209281, 9781317209287

More Books

Students also viewed these Economics questions

Question

Discuss the impact of religion on individual behavior.

Answered: 1 week ago

Question

3. Im trying to point out what we need to do to make this happen

Answered: 1 week ago