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Answer to Question #71994 in Microeconomics for sln
Question #71994
Suppose we have a production function,
q = 10K^0.25 L^0.25 g^0.25 where g refers to the seating capacity of a restaurant which in the short run is fixed at g=36.
a. What is the total cost function, C(v,w,q) ?
b. What is the supply function, q (P,v,w)?
c. What is the profit function, (P,v,w)?
d. What is the demand for labor, L(P,v,w) and demand for capital, K(P,v,w)?
q = 10K^0.25 L^0.25 g^0.25 where g refers to the seating capacity of a restaurant which in the short run is fixed at g=36.
a. What is the total cost function, C(v,w,q) ?
b. What is the supply function, q (P,v,w)?
c. What is the profit function, (P,v,w)?
d. What is the demand for labor, L(P,v,w) and demand for capital, K(P,v,w)?
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