$$\text { When the production function is given by } Q = L , T C = w Q ^ { 2 } , L = Q ^ { 2 } \text { and } A C = w \text {. }$$

Question

Quizplus · Accepted Answer

The given production function results in a total cost function of TC = wL, which is linear in labor input. This means that the average cost function (AC) is also linear and decreasing with increasing output. Therefore, AC = TC/Q = wQ/L = w/Q, which is not equal to AC = w as stated in the question.

When the production function is given by Q=L,TC=wQ2,L=Q2 and AC=w. \text { When the production function is given by } Q = L , T C = w Q ^ { 2 } , L = Q ^ { 2 } \text { and } A C = w \text {. } When the production function is given by Q=L,TC=wQ2,L=Q2 and AC=w.

$\text { When the production function is given by } Q = L , T C = w Q ^ { 2 } , L = Q ^ { 2 } \text { and } A C = w \text {. }$