>> Business Economics
A firm has a production function given by q=2 sqrt(KL) In the short run, the firm’s amount of capital equipment is fixed at K=100. The rental rate for K is v=$1, and the wage rate for L is w=$4.
a. Find the firm’s short-run total cost function (STC). Calculate the short-run average cost function. Calculate the short run marginal cost function. (All are functions of q)