handwrite it out Consider production function f (L, K) = 10VLK and input prices w10,r = 90.|| b. Suppose that in the short run capital is fixed at some arbitrary value K = 5. How much labor will the firm use andwhat will be the short run total cost of production STC (w,r,q)?

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Consider production function f(L, K) = 10VLK and input prices w = 10,r = 90.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.1CE

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handwrite it out

Consider production function f (L, K) = 10VLK and input prices w
10,r = 90.
||

b. Suppose that in the short run capital is fixed at some arbitrary value K = 5. How much labor will the firm use and
what will be the short run total cost of production STC (w,r,q)?

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