Please find b a at output level q total variable cost is a n...

Please find (b) a. At output level Q, total variable cost is: A N C=U C/Q V C=A V C imes Q=Q imes B so OBEQ b. At output level Q, total fixed cost is: F C =F C imes Q = heta imes A B C D E c. At output level Q, total cost is: O B E Q+B C D E d. At output level Q, average fixed cost: Q F S^' E D

Transcript

00:01 So here question is present in three parts.

00:03 So at part a we have to find the total cost as function of w v and q.

00:12 So we need to determine the quantities of capital labor that minimize the cost for the given level of output so we can use the production function q is equals to k to the power 1 by 3 multiply by l to the power 2 by so we can rewrite in terms of capital which is k is equals to q divided by l to the power 3 by 2.

00:42 So substituting this expression for k into the cost function.

00:47 We got c is equals to w multiply by k plus v multiply by l.

00:56 So this is l now, therefore we got w we put the value of k that is q divided by l to the power 3 by 2 v multiply by l.

01:13 So now here we can say c is equals to therefore the total cost function in the form of w v q is equals to pc is equals to w multiply by q divided by l to the power 3 by 2 plus v multiply by l.

01:36 So this is our final answer for part 1 or part a now in part b, we have to find the marginal cost as a function of w v and q.

01:51 So we differentiate the total cost with respect to q.

01:55 So we got mc is equals to dc.

01:58 This is also we can represent it by c.

02:01 So dc by dq.

02:04 So now put the values here when we taking the function.

02:08 So mc is equals to 3 by 2 multiply by w multiply by q by l to the power 1 by 2 minus 0 plus 0 when we solve it...