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Solve clearly Exercise (1) A chemical firm has a production function of q = 1010.32 10.56. It faces factor prices of w = 10 and

Solve clearly

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Exercise (1) A chemical firm has a production function of q = 1010.32 10.56. It faces factor prices of w = 10 and r = 20. what are its short run marginal and average variable cost curves? (2) A water heater manufacturer produces q water heaters per day, q, using L workers and S square feet of sheet metal per day, using a constant elasticity of substitution production function, q = (1 2 + $ 2/40) ) 0.5. The hourly wage rate is $20, and the price per square foot of sheet metal is $1 (a) What is the marginal product of labor? What is the marginal product of capital? (b) What is the expansion path equation? Draw the expansion path (c) Derive the long-run cost function

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