Question: Consider a firm with long - run production function Q = f ( L , K ) = 3 L ^ ( 1 / 2

Consider a firm with long-run production function
Q=f(L,K)=3L^(1/2)K^(1/2),
where Q is output, L measures labor input, and K measures capital input.
Input prices are w =12 and r =3 per unit of labor and capital, respectively.
At the given factor prices, what is the firms (long-run) cost as a function of output, C(Q)?
Compute the firms (long-run) marginal cost and average cost curves at the given factor prices, MC(Q) and AC(Q), respectively?
In the short-run capital is fixed at level K=16. Find the firms short-run total cost, short-run marginal cost, and short-run average cost curves, STC(Q;K =16), SMC(Q;K =16), SATC(Q;K =16), respectively?
Now consider some comparative statics properties as parameters change (only change one parameter at a time and consider the other parameters unchanged from the problem above).
How would your answers to parts 1 and 2 change if the firm faced input price r'=9 for capital instead of r =3?(Here w =12 remains unchanged)
How would your answers to parts 1 and 2 change if the firm faced input price w=3 for labor instead of w =12?(Here r =3 remains unchanged)
How would your answers to part 3 change if the firms capital level were fixed at K =9 instead of K =16?(Here w =12 and r =3 remain unchanged)

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