Suppose that a firm\'s production function is q = 5x0.5 in the short run, where

Question

Suppose that a firm's production function is q = 5x0.5 in the short run, where there are fixed costs of $1,000, and x is the variable input whose cost is $1250 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q). The total cost of producing a level of output q is OA. 1250q2 25 C(q) = B. 2 1250q 25 OC. C(a) 1,000+9 C(q) = 1,000. C(q) = 1,000 + OD, OE. 2 25 Write down the equation for the supply curve. Enter your answer in the answer box and then click Check Answer.

Explanation / Answer

Ans

Given supply curve as P=100q

P=800

q=P/100

Q=800/100

Q=8

The firm will produce 8 units of output.

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