Chapter 12: Problem 4
Suppose that a firm's fixed proportion production function is given by \\[ q=\min (5 K, 10 \mathrm{L}) \\] and that the rental rates for capital and labor are given by \(v=1, w-3\) a. Calculate the firm's long-run total, average, and marginal cost curves. b. Suppose that Xis fixed at 10 in the short run. Calculate the firm's short- run total, aver age, and marginal cost curves, What is the marginal cost of the 10 th unit? The 50 th unit? The 100 th unit?