Information for questions 10-12 A firm’s short-run total cos…
Information for questions 10-12 A firm’s short-run total cost function is given by C=550 + 300 Q + 10 Q2. Capital is the only input that is fixed in the short run, that is, it cannot be changed in the short run. Labor, on the other hand, is variable, and can be changed in the short run. The rental rate is $25 per unit of capital, the wage is $50 per unit of labor. For this group, answers within 1% of the correct answer are accepted, so carry several decimals in your calculations. Enter 0 if the question cannot be answered with the information provided. How many units of capital is the firm using, in the short run?