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A firm producing hockey sticks has a production function given by
X = 2 KL
In the short-run, the firm's amount of capital equipment is fixed at K = 1000. The rental rate for capital (PK) is PK = v = Re 1.00; and the wage rate for L is PL = w = Rs 4.00.
a) Calculate the firm's short-run total cost curve. Calculate the short-run average cost curve.
b) What is the firms short-run marginal cost function? What are the STC, SATC & SMC for the firm if it produces25 hockey sticks?
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