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Production Functions and Variable Cost

1) In the production function, suppose that z2 is 12. The total product function is

TP(z1)= 120(z1)^1/2 Find the average product function?

Answer: AP(z1) = TP(z1)/z1

AP=120/(z1)^-1/2 Could you explain in detail why this is the answer.

2. Could you explain how to find Variable Cost VC(y) and if possible could you give an example and explain the math in detail.

Solution Summary

Production Functions and Variable Costs are investigated.