V1 Answer questions 5-7 based on the following information:Suppose that the production function for your firm is given by: F(L, K) = LiKz. w=2 and r=4.11 6. If the firm has a fixed cost of $100, what is the total cost function and the average variable costfunction?a. TC= 100+6Q4/3; AVC=6Q¹/3b. TC= 100+6Q3/4; AVC=6Q3/4c. TC= 100+6Q³; AVC=6Q²d. TC= 100+6Q; AVC=6Q

Given:F(L,K)=L14K12w=2r=4 FC= $100

Answered: Answer questions 5-7 based on the…

Answer questions 5-7 based on the following information: Suppose that the production function for your firm is given by: F(L, K) = LiKz. w=2 and r=4. 11

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.1CE

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Question

6. If the firm has a fixed cost of $100, what is the total cost function and the average variable cost
function?
a. TC= 100+6Q4/3; AVC=6Q¹/3
b. TC= 100+6Q3/4; AVC=6Q3/4
c. TC= 100+6Q³; AVC=6Q²
d. TC= 100+6Q; AVC=6Q

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