Question
Suppose a cost-minimizing firm has a production function =(,) The firm's capital is fixed in the short-run at =5. Suppose the cost of a unit
Suppose a cost-minimizing firm has a production function
=(,)
The firm's capital is fixed in the short-run at =5. Suppose the cost of a unit of labor isw and the cost of a unit of capital isr. What is the average fixed cost if the firm is producing 10 units?
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Macroeconomics
Authors: Charles I. Jones
3rd edition
978-0393123944, 393123944, 393923908, 978-0393923902
