1) Marges Hair Salon production function is y(K, L) = KL where K is the number of hair dryers and
L is the number of labor hours she employs. a) Does this production function exhibit increasing,
decreasing, or constan
2) A firm's total cost function is given by the equation:
TC = 4000 + 5Q + 10Q2
(1) Write an expression for each of the following cost concepts:
a) Total Fixed Cost = 4000
b) Average Fixed Cost = 4000/Q
c) Total Varia
Problem Set 1
Which of the following would shift the demand curve for new textbooks to the right?
a) A fall in the price of paper used in publishing texts.
b) A fall in the price of equivalent used