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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Frank’s Fasteners is a company that produces specialty fasteners for hanging high-tension power lines to utility towers. Currently the company has labor costs of $25 per hour of labor, while capital costs are $100 per hour per unit of capital. In the short run, however, capital is fixed at 5 units. The company’s production function is given by:
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What are the short-run AVC and ATC functions?
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