Question
Suppose A = 50 anda = for the production function Q = A K a L 1-a . [a] Find total output when K =
Suppose A = 50 anda = for the production function Q = A Ka L1-a.
[a] Find total output when K = 6 units and labor inputs are 1 to 6.
[b] Find the total cost associated with producing the outputs found in [a] when the cost of capital is $20 a unit and the cost of labor is $30 a unit.
[c] Find the total fixed costs and total variable costs associated with producing the outputs in [a].
[d] Find the average fixed costs, the average variable costs and the average total costs associated with producing the outputs in [a].
[e] What is the relationship of marginal costs to average total costs for these outputs?
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