Consider the production function q=2K^(1/2)+2L^(1/2) 

1.  
2. Solve for the quantity-constant factor demands.
3.  
4. What is the cost function for this technology?
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6. Differentiate the cost function with respect to w. Show that this is the same as the factor demand you solved for in part b.
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8. Find the marginal and average costs of production. Is the marginal cost of production higher or lower than the average cost of production?
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Production Function q 2K12 2L12 QuantityConstant Factor Demands 1 Find the optimal capitallabor ratio To find the quantityconstant factor demands we n... View the full answer