A firm has the production function Q = K0.4L0.6. The wage is $60, and the rental rate

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A firm has the production function Q = K0.4L0.6. The wage is $60, and the rental rate on capital is $20. Find the firm's long-run expansion path.

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Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Question Posted: Jan 13, 2016 02:37 AM

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A firm has the production function Q = K0.4L0.6. The wage is $60, and the rental rate

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Write out the costminimization problem and Lagrangian Take the firstorder condition...View the full answer

Microeconomics

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