Question
Sketch the short-run TC, ATC, and MC curves for the production function Q = 3KL0.5, where K is fixed at 2 units in the short
Sketch the short-run TC, ATC, and MC curves for the production function Q = 3KL0.5, where K is fixed at 2 units in the short run with r=4 and w=12. For which values of Q is the marginal cost curve above the average total cost curve? What do you notice about the relationship between the marginal cost curve and the average total cost curve?
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Macroeconomics
Authors: N. Gregory Mankiw, William M. Scarth
5th Canadian Edition
1464168504, 978-1464168505
