A firm has a production function of , the rental rate of capital is $60, and the wage rate is $30. In the short run, is fixed at 100 units.
a. What is the short-run production function?
b. What is the short-run demand for labor?
c. What are the firm's short-run total cost and short-run marginal cost?

Question

A firm has a production function of  , the rental rate of capital is $60, and the wage rate is $30. In the short run,  is fixed at 100 units.
a. What is the short-run production function?
b. What is the short-run demand for labor?
c. What are the firm's short-run total cost and short-run marginal cost?

Quizplus · Accepted Answer

The Answer of A firm has a production function of  , the rental rate of capital is $60, and the wage rate is $30. In the short run,  is fixed at 100 units.
a. What is the short-run production function?
b. What is the short-run demand for labor?
c. What are the firm's short-run total cost and short-run marginal cost?

A Firm Has a Production Function of , the Rental