Firm average fixed cost function-average total cost function

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Suppose a firms production function is Q = 2K0.5 L0.5. Its level of capital is fixed at 9 units, the price of labor is PL = $12 per unit, and the price of capital is PK = $10 per unit. The firm’s average fixed cost function, average variable cost function, and average total cost function are, respectively:

Reference no: EM131095520

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Firm average fixed cost function-average total cost function : Suppose a firms production function is Q = 2K0.5 L0.5. Its level of capital is fixed at 9 units, the price of labor is PL = $12 per unit, and the price of capital is PK = $10 per unit. The firm’s average fixed cost function, average variable cost fun..

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