The firm’s marginal cost of production when the firm is producing 50 units of output is 33.33
Solution:
The production function is Q = [tex]\sqrt{L * K}[/tex]
The initial value is 10 units. The production value is 50 units The manufacturing cycle needs work as stated below.
Q = [tex]\sqrt{L * K}[/tex]
Q = [tex]\sqrt{L * 10}[/tex]
L = [tex](\frac{Q}{3.162} )^{2}[/tex]
The wage rate is $15 . The following is the expense of the manufacturing process.
TC = [tex]P_{L} * L + P_{K} * K[/tex]
TC = [tex]( 15 * (\frac{Q}{3.162} )^{2} ) + [ P_{k * 10}][/tex]
The marginal production cost is really the increase in manufacturing costs as output increases by 1 point.
As listed below, the marginal cost:
TC = [tex]( 15 * (\frac{Q}{3.162} )^{2} ) + [ P_{k * 10}][/tex]
MC = [tex]\frac{TC}{Q}[/tex] = [tex]\frac{2Q}{3}[/tex]
MC = [tex]\frac{2*50}{3}[/tex] = 33.33
