Question: A firm has a Cobb-Douglas production function q = f(K, L) = KaL-a where K = K = 10,000, w = 20, r =

A firm has a Cobb-Douglas production function q = f(K, L) = 

A firm has a Cobb-Douglas production function q = f(K, L) = KaL-a where K = K = 10,000, w = 20, r = 0.01, a = 0.5 1. Compute total quantity in terms of labor (SR total product relation) 2. Determine the labor requirement relation 3. Compute the cost function in terms of quantity 4. Compute the supply curve of this firm 5. Assume the number of firms in the industry is 50, then, compute the market supply function 6. Find the elasticity of supply 7. For this demand function: Qd = 15,000-100p, compute the equilibrium price and market quantity 8. Compute the level of employment of a firm 9. Find the profit of a firm

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

1 Compute total quantity in terms of labor SR total product relation The CobbDouglas production function is given as q fK L Ka L1a Substituting the gi... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!