Question
how we got the underlined answe r of below questions (mathematically) in details: 1- Flath (2011) estimated that the Cobb-Douglas production function of a typical
how we got the underlined answer of below questions (mathematically) in details:
1-
Flath (2011) estimated that the Cobb-Douglas production function of a typical Japanese beer manufacturer.
-The production function is Q = 1.52L0.6K0.4.
-Assume that firm's capital is fixed at K = 100 units in the short run, the rental rate is r = $8, and the wage is w = $24.
-
Calculating cost curves:
-Q = 1.52L0.6(100)0.4, implying L 0.023Q1.67
2-
Given the production function Q = 4L + K, what is the marginal product of labor when capital is fixed at 50?
a.1
b.4
c.50
d.54
e.250
3-
Suppose the short-run production function is Q = 10L. If the wage rate is w = $10 per unit of labor, then AVC equals
a.Q
b.Q/10
c.1
d.1/Q
e.10/Q
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