he firm is a price taker for both bar stools (which sell for P) and workers (which can be hired at a wage rate of w p

2.4 Q7 In the theory of the firm, economist consider the total cost to be a function of the output level Q: C=f(Q). (a) According to the definiton of a function, should each cost figure be associated with a unique level of output? (b) should each leyel of output determine a unique cost figure?

3. Elsa's handicrafts has the production function f(x1,x2) = (min{x1 ,2x2})2, where x, is the amount of plastic used, x, is the amount of labor used, and f(x1,x2) is the number of lawn ornaments produced. Let w, be the price per unit of plastic and w, be the wage per unit of labor. а. What is Elsa's cost function c(w1,w2,y)? b. If wi = w2 = 1, then what is Elsa's marginal cost of producing y units of output? What is the number of units of output that she would supply at price p? At these factor prices, what is her average cost per unit of output? c. If the competitive price of the lawn ornaments she sells is p = 48, and w, = w2 = 1, how many will she produce? How much profit will she make? d. More generally, at factor prices w, and w2, what is her marginal cost? At these factor prices and an output price of p, what is the number of units she will choose to supply?

2. Assume that a firm has the following production function; q = L0.5K0.5. Its capital is fixed at K = 1. It faces a rental rate of r = $90 and a wage rate of W = $10. a. Calculate the firm's fixed costs. b. Determine the firm's variable cost function. c. Determine the firm's short run cost curve.

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May I know the correct answer???

Can you please help solve question 9 d and e please show full working so I can compare it to my own work Thank you

Subpart 1-3

A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but labour is variable. The firm’s production function is: X=-0.2L3 + 18L2 + 1620L. Where X is the number of units of the product per week, and L is the number of persons employed. A t what weekly output is marginal cost equal to average variable cost? if the price of the product is $0.20 per unit, what is the maximum weekly wage that the firm would pay rather than close down?

Economics A firm has the production function q = K0.25L0.25 , where K is capital, L is labor, and q is output. The price of capital is v = 4 and the price of labor is w = 4. [You may need this result: if Yα = Z. Then Y = Z1/α]. (i) Derive the firm’s short-run cost function if capital is fixed at K = 16. (ii) Derive the firm’s long-run cost function. (iii) Someone claims that the firm’s