A firm faces a production function with inputs capital (K) and labor (L): F(K, L) = K¹/2 1/4 The amount of capital used for production is determined at the beginning of the year. The prices of K and L are v and w respectively.
A firm faces a production function with inputs capital (K) and labor (L): F(K, L) = K¹/2 1/4 The amount of capital used for production is determined at the beginning of the year. The prices of K and L are v and w respectively.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 5E
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![A firm faces a production function with inputs capital (K) and labor (L):
F(K, L) = K¹/² [1/4
The amount of capital used for production is determined at the beginning of the year.
The prices of K and L are v and w respectively.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b686a53-4fe9-4179-9a2d-0237054b121e%2F7683b31d-0be7-4654-82f3-3a557df09eea%2F1z7biti_processed.png&w=3840&q=75)
Transcribed Image Text:A firm faces a production function with inputs capital (K) and labor (L):
F(K, L) = K¹/² [1/4
The amount of capital used for production is determined at the beginning of the year.
The prices of K and L are v and w respectively.
![What is the short-run cost function for a given quantity q, given that the owner purchased K
amount of capital at the beginning of the year?
C's (q, w, v, K) = vŘ¹/2 +w.
qª
Ř²
Cs (q, w, v, K) = vK¹/2 + w
K
qª
Cs (q, w, v, K) = vK + w-
K
4
Cs (q, w, v, K) = vK +w-
qª
K²](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b686a53-4fe9-4179-9a2d-0237054b121e%2F7683b31d-0be7-4654-82f3-3a557df09eea%2F5gc4ju_processed.png&w=3840&q=75)
Transcribed Image Text:What is the short-run cost function for a given quantity q, given that the owner purchased K
amount of capital at the beginning of the year?
C's (q, w, v, K) = vŘ¹/2 +w.
qª
Ř²
Cs (q, w, v, K) = vK¹/2 + w
K
qª
Cs (q, w, v, K) = vK + w-
K
4
Cs (q, w, v, K) = vK +w-
qª
K²
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