Question suppose that the production function for girl, Ask an Expert

Economics

Question: Suppose that the production function for Girl Scout cookies is given by Q(K, L) = K 1 2L 1 2 The workers who make Girl Scout cookies are paid a wage of $5 per hour and a unit of capital can be rented for $10 per hour.

(a) In the short run, this troop's capital is fixed at K=9. Find the firm's short run total cost function, SRT C(Q).

(b) Suppose that capital is now fully flexible. Find the long run total cost function, LRT C(Q).

(c) For what level of Q is the long run cost function equal to the short run cost function? (Hint: You should determine the solution without doing the obvious method, which involves solving a difficult quadratic equation.)

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M92253572

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Question 1 true or xfalse1 opportunity cost is the cost for

Question: 1. (True) or X(False) 1. Opportunity cost is the cost for obtaining an opportunity. 2. Positive economics is an economic activity for positive results. 3. Beef and chicken are Normal Goods. 4. Peanut Butter and ...

Question -explain how a crisis that originated in the

Question - Explain how a crisis that originated in the financial sector rapidly spread to the real sector in the US in 2007-08. Explain how the 2007-08 crisis in the US generated a global financial and economic crisis th ...

Question suppose the price level in a particular economy

Question: Suppose the price level in a particular economy equals 1.3 and that the quantity of real GDP demanded at that price level is $1,200. An increase of 0.1 point in the price level reduces the quantity of real GDP ...

Assignment 2 global economy national economies and

Assignment 2: Global Economy, National Economies, and Competition In the first part of the twenty-first century a great recession struck most of the countries in the world. The next decade has been severally impacted wit ...

Economics and finance for business assignment -research

Economics and Finance for Business Assignment - Research report on Australian businesses - An industry or market analysis The objective: To conduct a market or industry analysis of rival businesses in an industry of your ...

Question - this question is to get some practice drawing

Question - This question is to get some practice drawing budget constraints. You are in your first semester at college and deciding to spend your income between textbooks and food. You have $360 for the month. Textbooks ...

Question assume two countries a and b with sizes of

Question: Assume two countries, A and B, with sizes of domestic markets 300 million and 533 1 3 million units in annual sales, respectively. In this market, firms compete by differentiating their product, while the cost ...

Question why might a parent company like mcdonalds or

Question: Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees? In many smaller cities all McDonald's outlets are owned by the same ...

Question - suppose you are drawing cards out of a 30 card

Question - Suppose you are drawing cards out of a 30 card deck. The following table reports the value of each type of card and the frequency of each type. Value Frequency 1 6 2 7 3 6 4 3 5 8 Are the card values discrete ...

Question - recall that the long-run world oil demand

Question - Recall that the long-run world oil demand equation is Upper Q equals 41.6 minus 0.12 Upper PQ=41.6-0.12P and the long-run total oil supply equation is Upper Q equals 26.3 plus 0.071 Upper PQ=26.3+0.071P. The l ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Macroeconomics Expert