Question

2. (15 points) Anne has a part time job after school at a grocery store which pays her $10 an hour, and also mows lawns in her neighborhood. In order to mow a lawn, Anne needs a lawnmower, and since she sells to the closest neighbors first, the time it takes to mow each lawn is increasing in the number of lawns mown. With a standard lawnmower, mowing q lawns requires $q^2$ hours of labor, and with a turbo lawnmower it requires $q^2/2$ hours of her labor. She can rent a standard mower for $10 for a week or a turbo mower for $30 for a week. a. Suppose in the short run Anne is committed to using the standard mower. What is her short run cost function for lawns mowed for the week? b. Suppose instead that in the short run Anne is committed to using the turbo mower. What is her short run cost function for lawns mowed for the week? c. What is Anne's long-run cost function?

          2. (15 points) Anne has a part time job after school at a grocery store which pays her $10 an hour,
and also mows lawns in her neighborhood. In order to mow a lawn, Anne needs a lawnmower, and
since she sells to the closest neighbors first, the time it takes to mow each lawn is increasing in the
number of lawns mown. With a standard lawnmower, mowing q lawns requires $q^2$ hours of labor,
and with a turbo lawnmower it requires $q^2/2$ hours of her labor. She can rent a standard mower for
$10 for a week or a turbo mower for $30 for a week.
a. Suppose in the short run Anne is committed to using the standard mower. What is her short run
cost function for lawns mowed for the week?
b. Suppose instead that in the short run Anne is committed to using the turbo mower. What is her
short run cost function for lawns mowed for the week?
c. What is Anne's long-run cost function?

2. (15 points) Anne has a part time job after school at a grocery store which pays her 10 an hour,
and also mows lawns in her neighborhood. In order to mow a lawn, Anne needs a lawnmower, and
since she sells to the closest neighbors first, the time it takes to mow each lawn is increasing in the
number of lawns mown. With a standard lawnmower, mowing q lawns requiresq^2hours of labor,
and with a turbo lawnmower it requiresq^2/2hours of her labor. She can rent a standard mower for10 for a week or a turbo mower for 30 for a week.
a. Suppose in the short run Anne is committed to using the standard mower. What is her short run
cost function for lawns mowed for the week?
b. Suppose instead that in the short run Anne is committed to using the turbo mower. What is her
short run cost function for lawns mowed for the week?
c. What is Anne's long-run cost function?

Added by Eduardo C.

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