Herongate Horses produces saddles (y)using two inputs, leather (z₁)and labour (z₂). Herongate Horses' production function is given by: F(z₁,z₂)= (1/4)z₁z₂. Suppose that z₂is fixed at 2.
i)Find Herongate Horses' total product function, TP(z₁)when w₁= 5 and w₂= 20.
ii)Find Herongate Horses' variable cost function, VC(y). Find and graph the average variable cost function,
AVC(y).

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The Answer of Herongate Horses produces saddles (y)using two inputs, leather (z₁)and labour (z₂). Herongate Horses' production function is given by: F(z₁,z₂)= (1/4)z₁z₂. Suppose that z₂is fixed at 2. i)Find Herongate Horses' total product function, TP(z₁)when w₁= 5 and w₂= 20. ii)Find Herongate Horses' variable cost function, VC(y). Find and graph the average variable cost function, AVC(y).

Herongate Horses Produces Saddles (Y)using Two Inputs, Leather (Z1)and Labour

Herongate Horses Produces Saddles (Y)using Two Inputs, Leather (Z₁)and Labour