Suppose the production function for high quality brandy is given by : Q = √KL Where q is the output of brandy per week and L is labor hours per week ., in the short run K is fixed at 100, so the short run production function is Q = 10√L a. Ifthecapitalrentsfor10$andthewageare5$perhour.,writetheshortruntotalcost function. b. How much will the firm produce at a price of 20$ per bottles of brandy ? c. Howmanylaborhourswillbehiredperweek?
Suppose the production function for high quality brandy is given by : Q = √KL Where q is the output of brandy per week and L is labor hours per week ., in the short run K is fixed at 100, so the short run production function is Q = 10√L a. Ifthecapitalrentsfor10$andthewageare5$perhour.,writetheshortruntotalcost function. b. How much will the firm produce at a price of 20$ per bottles of brandy ? c. Howmanylaborhourswillbehiredperweek?
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.9P
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Suppose the production function for high quality brandy is given by : Q = √KL Where q is the output of brandy per week and L is labor hours per week ., in the short run K is fixed at 100, so the short run production function is Q = 10√L a. Ifthecapitalrentsfor10$andthewageare5$perhour.,writetheshortruntotalcost function. b. How much will the firm produce at a price of 20$ per bottles of brandy ? c. Howmanylaborhourswillbehiredperweek?
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