short run, Microeconomics

Assignment Help:
A film studio in Hollywood produces movies according to the function
q = F(K;L) = (2=100)K^0.5L^0.5
In the short run, capital (studios, gear) is xed at a level of 100. It costs $40 (in thousands) to
rent a unit of capital and $10 (in thousands) to hire a unit of labor (actors, stuntmen, camera crew
etc.).
What is the fi xed cost? What is the variable cost as a function of output q?
(b) What is the marginal cost (MC) and the average cost (AC) of a movie? What is the average
variable cost and average fixed cost?

Related Discussions:- short run

Implications for the role of economic theory, Implications for the Role of ...

Implications for the Role of Economic Theory : Like the schedule for the marginal efficiency of capital, expectations about the future market rate of interest underlie the li

Theory of customs union, THEORY OF CUSTOMS UNION: A customs union is a...

THEORY OF CUSTOMS UNION: A customs union is an association of two or more countries to encourage trade. The countries making such an arrangement agree to eliminate tariffs and

Demand and supply of education, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Change in consumer surplus, a. Generally, there will be a difference betwe...

a. Generally, there will be a difference between the CV and the EV. Why? b. The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it

Explain three major barriers of developing contries, Explain three major ba...

Explain three major barriers to development experienced by developing countries. Well, the scope of possible answers here is, em, wide, to say the least. The issue is not to si

Canalisation, State trading is often associated with canalisation. Canalisa...

State trading is often associated with canalisation. Canalisation means estaolishment of state monomply in foreign trade. In other words, an item that is canalised can be imported

Gift giving etiquette, Manners of reaching to someone's place with a presen...

Manners of reaching to someone's place with a present of anything like flowers, chocolates, etc. In U.S., it's not feel good to give flowers to women by men. If a man giving some g

Market supply of labour, #queUse a graphical illustration to describe brief...

#queUse a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more wome

Types of price discrimination, First Degree Price Discrimination - The mono...

First Degree Price Discrimination - The monopolist sells different units of the commodity at different prices which differ from person to person. Second Degree Price Discriminat

Intermediate microeconomics, show that the necessary and sufficient conditi...

show that the necessary and sufficient conditions for consumer equilibrium under both cardinal and ordinal utility theories are identical .

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd