Consider the production function for a phone given by Q = 6L^(1/2)K^(1/2) a) derive the long run total cost function (TC) as a function of Q, r, and w. Then, suppose the amount of capital is fixed at K = 1. Derive the short run total cost (TC) function as a function of Q, r, and w.
Consider the production function for a phone given by Q = 6L^(1/2)K^(1/2) a) derive the long run total cost function (TC) as a function of Q, r, and w. Then, suppose the amount of capital is fixed at K = 1. Derive the short run total cost (TC) function as a function of Q, r, and w.
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.3P
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Transcribed Image Text:Consider the production function for a
phone given by Q = 6L^(1/2)K^(1/2) a)
derive the long run total cost function (TC)
as a function of Q, r, and w. Then,
suppose the amount of capital is fixed at K
= 1. Derive the short run total cost (TC)
function as a function of Q, r, and w.
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