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Stuck on this question. Please help. Thank you 2. (14 points) Consider a firm that uses a Cobb-Douglas production function of the form: Q =
Stuck on this question. Please help. Thank you
2. (14 points) Consider a firm that uses a Cobb-Douglas production function of the form: Q = 4 K.4 L .5 And which faces the following input prices: w=30, r=20. [Note: you can use your knowledge of C-D to calculate the slope of the isoquant] a) What is the minimum cost for the rm to produce 10 units of output? b) What is the maximum output that can be produced for $400? c) Calculate the long-run total cost mction, marginal cost mction, and average cost function. d) Now consider that the rm has 32 units of capital in the short-run. Calculate the short-run total cost function, the marginal cost function, and the average cost function. Draw the short-run marginal cost and short-run average cost curves (label any key points). 6) For What level of output are the short-run cost functions equal to the long-run cost functionsStep by Step Solution
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