A Firm Has a Production Function of Q = KL

question 4

Essay

A firm has a production function of Q = KL + L, where MP_L = K + 1 and MP_K = L. The
wage rate (W) is $100 per worker and the rental (R) is $100 per unit of capital.
a. In the short run, capital (K) is fixed at 4 and the firm produces 100 units of output. What
is the firm's total cost?
b. In the long run, what is the total cost of producing 100 units of output?

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Definitions:

Product Disposal

The process of getting rid of a product that has reached the end of its useful life, considering environmental and regulatory aspects.

Temporal Factor

An element that considers the role of time in affecting outcomes in various contexts, such as psychology, economics, and science.

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Polychronic activity refers to the handling of multiple tasks or events simultaneously, characteristic of cultures that value flexibility in time management.

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Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement rather than focusing solely on short-term goals.