Helen produces first-aid kits using labor and capital with the production function q= 6L0.8 K0.2, where the wage is $5 and rental rate is $3. Helen's Total Cost function if her capital is fixed at 50 units is C(q)-0.2q1.25 +150. What would be total cost at 50 units of first aid kit. A $153.56 B. $176.62 OC $213.32 D.$161.19 QUESTION 2 With reference to Question 1, at how many units of first aid kit does Average Cost (AC) and Marginal Cost (MC) cross each other? CA 505 Units B.350 Units OC 150 Units D.605 Units

Helen produces first-aid kits using labor and capital with the production function q= 6L0.8 K0.2, where the wage is $5 and rental rate is $3. Helen's Total Cost function if her capital is fixed at 50 units is C(q)-0.2q1.25 +150. What would be total cost at 50 units of first aid kit. A $153.56 B. $176.62 OC $213.32 D.$161.19 QUESTION 2 With reference to Question 1, at how many units of first aid kit does Average Cost (AC) and Marginal Cost (MC) cross each other? CA 505 Units B.350 Units OC 150 Units D.605 Units

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 9TY

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