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Suppose production function for burritos at Chipotle is Q =4k^1/2 L^1/2.They currently own 4 units of capital and are not able to change this during the short run. The rental rate of capital is $10 and the wage rate is $20
(a) Suppose Chipotle wants to produce 48 burritos. What is their short run optimal input combination?
(b) What is Chipotle's short run total cost function?
(c) What is Chipotle’s short run variable cost function?
In order to create an effective incentive compensation scheme, you must have. Principal-agent problems: Principal-agent relationships:
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