A coffee shop's production function is given by Q = KL, where MP_L = K and MP_K = L. The barista wage rate is $10 and the rental per square foot is $15. In the short run, store size is fixed at 500 square feet. The long-run average total cost of producing 1,500 cups of coffee is $_____. A) 6.03 B) 5.02 C) 2.34 D) 0.63

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The Answer of A coffee shop's production function is given by Q = KL, where MP_L = K and MP_K = L. The barista wage rate is $10 and the rental per square foot is $15. In the short run, store size is fixed at 500 square feet. The long-run average total cost of producing 1,500 cups of coffee is $_____. A) 6.03 B) 5.02 C) 2.34 D) 0.63

A Coffee Shop's Production Function Is Given by Q =