Question: In Problem 18 in Chapter 8 you derived Hannah and Sam's long-run and short-run cost function when they have the Cobb-Douglas production function Q =

In Problem 18 in Chapter 8 you derived Hannah and Sam's long-run and short-run cost function when they have the Cobb-Douglas production function Q = F(L, K) = 10L0.5K0.5, both a worker and a unit of capital cost $1,000 per week, and they initially remodel 200 square feet per week. Their capital is fixed in the short run but variable in the long run. What are their long-run and short-run supply functions? Graph them.

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Theirshortrun supply function is PQ Their longrun supply function is P200 Explanation The supply fun... View full answer

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