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Please help me answer the following question and explain how to do each step of it. Hannah and Sam run Moretown Makeovers, a home remodeling
Please help me answer the following question and explain how to do each step of it.
Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function Q : F(L3K) Q : IOLO'SKD'S, where L is their number of workers and K is units of capital. The wage rate is $1,600 per week and a unit of capital costs $100 per week. Suppose that when initially producing 100 square feet a week, they use 40 units of capital. a. What is their short-run cost of remodeling 400 square feet per week? Instructions: Enter your answer as a whole number. as b. What is their long-run cost of remodeling 400 square feet per week? Instructions: Enter your answer as a whole number
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