Question: Given a production function Q = E(K, L) where K and L are the levels of capital and labor inputs. a) What are the second

Given a production function Q = E(K, L) where K and L are the levels of capital and labor inputs. a) What are the second order conditions of profit maximization. (6 points) b) Use the comparative static techniques to derive the expression of L p where L* is the Hotelling-Lau labor demand function. (7 points) c) Given that the production function is written as Q =K L with a + B = 1. Could you derive the second order conditions of profit maximization? Justify your answers. (7 points)
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