In the short run, the hot dog seller Doug's Dogs has a single variable input, labor (1) W = 50 The price of the labor input is: Doug is a price-taker. The price per case of hot dogs is: P = 100 The total product of labor equation is: TPL = 5L Doug's total fixed costs are: FC = 1000 a. Find the equations of variable cost, total cost, and marginal cost. VC = TC = MC = Find the profit-maximizing output, revenue, cost, and profit. Q* = R*= C* = n*= b.

In the short run, the hot dog seller Doug's Dogs has a single variable input, labor (1) W = 50 The price of the labor input is: Doug is a price-taker. The price per case of hot dogs is: P = 100 The total product of labor equation is: TPL = 5L Doug's total fixed costs are: FC = 1000 a. Find the equations of variable cost, total cost, and marginal cost. VC = TC = MC = Find the profit-maximizing output, revenue, cost, and profit. Q* = R= C = n*= b.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.7P

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