Michael's dairy farm's cost function is 
where q is the amount of output and A is the average age of Michael's employees.Currently,the average age of Michael's employees is 32.Next year,Michael expects the average age of his employees to decrease by 3 years due to job turnover.What happens to Michael's cost of production if he is correct?
Definitions:
Capital Budgeting
The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.
Accounting Rate of Return
This measures the return on investment by dividing the average annual profit by the initial investment cost, often used for evaluating the profitability of potential investments.
Payback Period
The amount of time it takes for an investment to generate cash flows sufficient to recoup the initial investment cost.
Straight-Line Depreciation
Straight-Line Depreciation is a method of allocating the cost of a tangible asset over its useful life in equal annual amounts, reflecting a constant rate of depreciation.
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