Economics - Cost Function Projects

PROJECT 2 1.) Determine the minimum cost production mix for the following set of isoquants (equal production

PROJECT 2

1.) Determine the minimum cost production mix for the following set of isoquants (equal production levels) and labor and capital -combinations.

Quantity Labor Capital Price of Labor Price of Capital
10 50 30 $12/unit $190/unit
10 30 45 8/unit 200/unit
10 15 50 7/unit 215/unit
20 170 35 $18/unit $195/unit
20 120 45 12/unit 200/unit
20 30 65 8/unit 220/unit
30 300 40 $25/unit $195/unit
30 150 60 15/unit 215/unit
30 100 75 12/unit 230/unit
40 600 40 $35/unit $195/unit
40 300 65 25/unit 220/unit
40 150 90 15/unit 235/unit

2.) A cost function, as a function of quantity produced, is:

\[C=5000+23q+.6{{q}^{2}}+600t\]

Where C is the cost, q is the quantity produced, and t is a time trend.

a.) What are the fixed and variable costs?

b.) Determine the marginal cost function.

3.) Determine the cost per period of producing 50 units per period for the next five periods. These periods are 21 through 25.

Price: $4.62
Solution: The downloadable solution consists of 3 pages, 162 words.
Deliverable: Word Document



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