Suppose firm Rocket is producing face masks. The production function of this firm can be represented...

Suppose firm Rocket is producing face masks. The production function of this firm can be represented as q=f(H, L)=1.5H+L/20, where H is the high skilled labor used and L is low skilled labor used.

If wage rate for high skilled labor is $600 (wH=$600) and wage for low skilled labor is $10 (wL=$10), calculate the H and L that will produce q=100 in the least costly way

Suppose in addition to labor cost, firm Keppa also has to pay a fixed cost equals to $30,000. Calculate the average total cost when the firm is producing q=100 in the least costly way.

Expert Solution

Rahul Sunny answered 2 years ago

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