A firm has a production function Q = F (K, L) with constant returns to scale. Input
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A firm has a production function Q = F (K, L) with constant returns to scale. Input prices are r = 2 and w = 1. The output- expansion path for this production function at these input prices is a straight line through the origin. When it produces 5 units of output, it uses 2 units of K and 3 units of L. How much K and L will it use when its long- run total cost is equal to 70?
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For this production function as long as the input price ratio P K ...View the full answer
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