A researcher claims to have estimated input demand curves in an industry in which the production technology

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A researcher claims to have estimated input demand curves in an industry in which the production technology involves two inputs, capital and labor. The input demand curves he claims to have estimated are L = ωr2Q and K = w2rQ. Are these valid input demand curves? In other words, could they have come from a firm that minimizes its costs?

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Microeconomics

ISBN: 9781119554844

6th Edition

Authors: David Besanko, Ronald Braeutigam

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