A researcher has claimed to have estimated a long-run total cost function for the production of automobiles.

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A researcher has claimed to have estimated a long-run total cost function for the production of automobiles. His estimate is that TC(Q, w, r) = 100w−½r½Q3, where w and r are the prices of labor and capital. Is this a valid cost function-that is, is it consistent with long-run cost minimization by the firm? Why or why not?
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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