TCLR (Q)=300+\frac{(Q^2+1)(Q+2)}{Q^2}
a. What is the long run average cost, average variable cost and marginal cost?
b. Suppose that there are only two inputs, capital and labor, and that in the TCLR function given
above, the price of capital is 100 and the price of labor is 10. Now suppose that the price of
capital drops to 50 and the price of labor drops to 5. Either give the new ACLR, VCLR, and
MCLR or argue why it is impossible to determine.
c. Suppose instead that the price of capital drops to 50 while the price of labor goes up to 20.
Either give the new ACLR, VCLR, and MCLR or argue why it is impossible to determine.