Give the production function: Q(K,L) = L + K2 a. Find the total cost function (TC) if w = $2 (wage price) and r = $20 (capital price). b. If the market function of demand is q = 45 - 3p/2, what price will you charge if the firm acts as a monopolist? Find also the optimal quantity of output, surplus, and profit. c. If it is a perfectly competitive firm, how much will it produce and at what price? Find the surplus and the loss due to economic inefficiency generated by the monopoly. d. Represent graphically situations b. and c.
Give the production function: Q(K,L) = L + K2
a. Find the total cost function (TC) if w = $2 (wage price) and r = $20 (capital price).
b. If the
c. If it is a
d. Represent graphically situations b. and c.
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Why Marginal Cost (MC) is 1?? I did my calcutation and is 2.
I replace on fucntion Q = L + (5)2 = L + 25, so L = Q - 25 and put on TC = 2(Q - 25) + 20(5)
So TC = 2Q - 50 + 100 = 2Q + 50, then MC = dTC / dQ = 2
You may be replaced TC = wL + rK, but this function no contains Q variable
Please confirm that. Thanks
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