The production function of a competitive firm is described by the equation q = 4x^1/2y^1/2. The factor prices are Px = $1 and Py = $36 and the firm can hire as much of either factor it wants at these prices. The firm's marginal cost is:

The production function of a competitive firm is described by the equation q = 4x^1/2y^1/2. The factor prices are Px = $1 and Py = $36 and the firm can hire as much of either factor it wants at these prices. The firm's marginal cost is:




Answer: constant and equal to 3.