Problem
Short run total cost function (8 points). Suppose the production function for Donut Friend donuts is given by Q(K, L) = K + 2L The workers at Donut Friend are paid a wage of $20 per hour and a unit of capital can be rented for $50 per hour.
(a) In the short run, Donut Friend's capital is fixed at K = 20. Find the firm's short run total cost function, T CSR(Q) when Q = 20.
(b) In the short run, Donut Friend's capital is fixed at K = 20. Find the firm's short run total cost function, T CSR(Q) when Q < 20.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.