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Short and Long Run Costs
Marginal Cost
Definition of Average Total Cost
If the government forced Sparkle to produce the efficient level of output, what would happen to the firm?
Marginal Revenue
How does the number of firms in the market affect each demand curve and why?
Optimal Value of Q
How much profit does each firm make?
Optimal Price
Conclusion
Cobb-Douglas Production Function
Exponentiation Rule
Deriving the Cobb-Douglas Production Function with Respect to Capital
First Derivative with Respect to Capital
Simplifying the Solution
Finding the Rental Rate of Capital
Real Rental Rate of Capital
First Derivative with Respect to Labor
Answer and Explanation
Conclusion