Question
Suppose that you are given the following production function: Q = 100K 0.6L 0.4 Determine the marginal product of capital and the marginal product of
Suppose that you are given the following production function: Q = 100K 0.6L 0.4 Determine the marginal product of capital and the marginal product of labor when K = 25 and L = 100. 2- For each of the following production functions, determine whether returns to scale are decreasing, constant, or increasing when capital and labor inputs are increased from K = L = 1 to K = L = 2. a. Q = 25K 0.5L 0.5 b. Q = 2K + 3L + 4KL 3- A firm's total cost function is TC = 12 + 60Q - 15Q 2 +Q 3 Suppose that the firm produces 10 units of output. Calculate total fixed cost (TFC), total variable cost (TVC), average total cost (ATC), average fixed cost (AFC), average variable cost (AVC), and marginal cost (MC)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started