The problem gives a production function $q = K^{1/2} L^{1/3}$, where $q$ is the quantity of output, $K$ is capital, and $L$ is labor. In the short run, capital is fixed at $K = 100$. The wage rate is $w = $10$, and the rental rate on capital is $r = $20$. We want to find the short-run marginal cost (MC).

Applied MathematicsProduction FunctionMarginal CostCalculusOptimizationEconomics
2025/7/1

1. Problem Description

The problem gives a production function q=K1/2L1/3q = K^{1/2} L^{1/3}, where qq is the quantity of output, KK is capital, and LL is labor. In the short run, capital is fixed at K=100K = 100. The wage rate is w=w = 10,andtherentalrateoncapitalis, and the rental rate on capital is r = 2020. We want to find the short-run marginal cost (MC).

2. Solution Steps

First, substitute K=100K = 100 into the production function:
q=(100)1/2L1/3=10L1/3q = (100)^{1/2} L^{1/3} = 10 L^{1/3}.
Solve for LL in terms of qq:
L1/3=q10L^{1/3} = \frac{q}{10}
L=(q10)3=q31000L = (\frac{q}{10})^3 = \frac{q^3}{1000}.
The short-run total cost (STC) is the sum of the variable cost (labor cost) and the fixed cost (capital cost).
STC=wL+rKSTC = wL + rK
STC=10L+20(100)STC = 10L + 20(100)
Substitute L=q31000L = \frac{q^3}{1000} into the STC equation:
STC=10(q31000)+2000STC = 10(\frac{q^3}{1000}) + 2000
STC=q3100+2000STC = \frac{q^3}{100} + 2000
The marginal cost (MC) is the derivative of the short-run total cost (STC) with respect to quantity qq:
MC=d(STC)dq=ddq(q3100+2000)MC = \frac{d(STC)}{dq} = \frac{d}{dq}(\frac{q^3}{100} + 2000)
MC=3q2100MC = \frac{3q^2}{100}

3. Final Answer

The short-run marginal cost (MC) is 3q2100\frac{3q^2}{100}.
The correct answer is a. 3q2/1003q^2/100.

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