Problem: Suppose that a firm's fixed proportion production function is given by Q = min(5k,10L)
The firm's Total Cost (TC) function is given by TC = vK + wL,
where v is the cost of K and w is the cost of L.
v = 1
w = 3
TC = K + 3L
Q1) Calculate the firm's long-run total, average and marginal functions.
Q2) Suppose that K is fixed at 10 in the short run. Calculate the firm's short-run total, average and marginal cost functions, and state the domain of the functions.