Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...

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Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...

Suppose in the short run a firm’s production function is given by Q = L^1/²*K^1/2, and that K is fixed at K = 36. If the price of Labor, w = $12 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 48 units of output?

MC = ________________________

business economics

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Answer 1

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Q 26/2K/ when, k236 Q2 4/2 (36) 1/2 z 6lla And, we 412 Q = 6h 2) L2 So, Total cost a we z 12 Q² And, Marginal cost a dTC, 201 Given, Q2. 48 There fore, Marginal Cost 2 12 Q 2 12 448 18 232 MC2 $32

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