Answer:
Explanation:
We are given:
K units of capital and L units of labor.
•Each unit of capital cost = 20
• Each unit of labor cost =25
• Level K is fixed at 5 units
We are told production function Q = K√L
Using the production functions and the values given, we can get that Q=5√L.
To find Q, the amount of labor will be given as:
Therefore, the Short run total cost function (STC) will be:
As a result of the record amount of grapes, the equilibrium price decreases while the equilibrium quantity increases. Please find attached the required graph.
<h3>What is the impact of the record amount of grapes?</h3>If there is a record amount of grapes produced, the amount of wine produced would increase. This is because grapes are an input used in the production of wine.
As a result, the supply of wine would increase. This would lead to a shift to the right of the supply curve for wine. the equilibrium price decreases while the equilibrium quantity increases.
To learn more about supply curves, please check: brainly.com/question/26073189
