Homework Answers
Total cost = wL + rK(bar)
SRATC = (wL + rK(bar))/Q
Q0.5 = L 0.5 + K0.5
after rearranging and replacing K = K(bar):
L = (Q0.5 - K(bar)0.5)2
(replace 'L' in the first equation)
SRATC = (Q0.5 - K(bar)0.5)2 x w/Q + rK(bar)/Q
option b
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