Question

(ii) Does the slope of your long-run total cost curve correspond to your (iii) Explain why, at any output level, the long-run total cost is always less than prediction in Part (2) or equal to the short-run total cost. Long-run marginal cost curve On Curve Sheet C, draw the long-run marginal cost curve. (7) (8) (i) (ii) Long-run average cost. On the attached Curve Sheet C, draw the long-run average cost curve. Explain why, at any output level, the long-run average cost is always equal or less than the short-run average cost. ALGEBRA OF COSTS This question is concerned with the algebra of the cost curves of the firm analyzed in Question (1). The firm which has use two inputs - labor (L) and capital (K) to produce output Q according to the production relationship 1-2 1 4K 4 (units per hr). The wage rate is 20 (S/hr)and the cost of capital is 60 (S/hr) In the short-run the firm's capital is preset at K-200 units, but labor usage may be chos In the long-run, the firm is able to chose its labor and capital to minimize its cost. (1) Derive the short-run cost of the firm as a function of its output Q. (2) Derive the long-run cost of the firm as a function of its output Q.
Q2 please！

Answer 1

ar、 2 uun Los "jィ