Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. a firm has the following long run production f

A firm has the following long run production function x = a(K^1/2)(L^1/2)(P^1/4), where a > 0...

50.1K

Verified Solution

Question

Economics

A firm has the following long run production function x =a(K^1/2)(L^1/2)(P^1/4), where a > 0 is a constant and K, L , Pare inputs of the three factors. The prices of K, L , P are Rs. 1 ,Rs. 9 and Rs. 8 respectively.

a) Derive the firm’s long run total cost function , long runaverage cost function and long run marginal cost function. Show theworkings in detail

b) In the short run P is fixed and K and L are variable. Derivethe firms short run a) Total Cost Function b) Variable Cost Functionc) Average Variable Cost Function d) Marginal Cost Function.

c) Obtain an equation of the form P = f(x) showing the optimumquantity of the fixed factor P for the firm to acquire as a functionof the intended output x.

Answer & Explanation Solved by verified expert
3.6 Ratings (315 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Job designs influence motivation and performance. What role might job designs have in the evaluation and...

General Management
Q

Thirty-one small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5...

Basic Math
Q

4 Factor x 4x 45 to its simplest factors x 4x 45 factors to

Algebra
Q

15 What is the percent increase of the following exponential function A 1 B 25...

Algebra
Q

Aliza (PVt) Ltd. hired you to be their Bookkeeper. You are required to prepare financial...

Accounting
Q

What is the cash flow identity? Explain its components in 250 words or more.

Accounting
Q

I am struggling with this, could you please help me? ...

Accounting
Q

The discussion guidelines include an original posting of 200 words minimum, using your own words,...

Accounting
Q

Tax Drill - Computing the Standard Deduction Compute the 2023 standard deduction for...

Accounting
Q

Bond prices. Price the bonds from the following table with quarterly coupon payments: Hint: Make...

Accounting
Q

Calculate Cash Flow From Assets (CFFA), Net Capital Spending (NCS), and Change in Net Working...

Finance
Q

Record The issuance Of 64.000 shares of CommonChegg.com mapter 11- Assignment 1 Sarved Help Save...

Accounting