Suppose a producer faces the following production function: K^0,5.K^0,5 given that L is the unit of labour and K is the unit of capital. Suppose K is 16, labour wage rate is R10 and rental rate of capital is R50, derive the TC and MC functions
Suppose a producer faces the following production function: K^0,5.K^0,5 given that L is the unit of labour and K is the unit of capital. Suppose K is 16, labour wage rate is R10 and rental rate of capital is R50, derive the TC and MC functions
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.3P
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Suppose a producer faces the following production function: K^0,5.K^0,5 given that L is the unit of labour and K is the unit of capital. Suppose K is 16, labour wage rate is R10 and rental rate of capital is R50, derive the TC and MC functions
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