Productivity Function Problem and AC Fall Then Rise

September 19, 2022

Productivity Function Problem and AC Fall Then Rise

Order ID:89JHGSJE83839

Style:APA/MLA/Harvard/Chicago

Pages:5-10

Instructions:

Productivity Function Problem and AC Fall Then Rise

I’m working on a business question and need guidance to help me learn.

2 points) (a) Suppose we have the following production function: Q=K¹/²L¹/² Suppose K is fixed in the short-run at 16. Letr = $20 and w = $20. State the firm’s short-run cost minimization problem given the fixed input.

(4 points) (b) Derive the short-run cost function so that we have costs as a function of Q: eg C(Q)= ? Show your work/reasoning.

(4 points) (c) Show that average costs first fall then rise with greater output. You can do this in a table or mathematically. Why does AC fall then rise?

(3 points) (d) What do we mean by a shut-down price? How is the shut-down price related to average variable costs? Explain.

(2 points) (e) What is the shut-down price if r = $20 and w= $20? Explain.

(1 points) (f) Let P = $12. State the firm’s profit maximizing problem.

(4 points) (g) Find optimal output. You can do this in a table or mathematically. Should the firm shut-down? Explain.

RUBRIC

Excellent Quality

95-100%

Introduction

45-41 points

The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.

Literature Support

91-84 points

The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.

Methodology

58-53 points

Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.

Average Score

50-85%

40-38 points

More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.

83-76 points

Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.

52-49 points

Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.

Poor Quality

0-45%

37-1 points

The background and/or significance are missing. No search history information is provided.

75-1 points

Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.

48-1 points

There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met