Question: Given f(K,L) = AK*L*~%. Is this function homogeneous? If so, to what degree? A firm has a demand curve for its single product, qa =

Given f(K,L) = AK*L*~%. Is this function homogeneous? If so, to

Given f(K,L) = AK*L*~%. Is this function homogeneous? If so, to what degree? A firm has a demand curve for its single product, qa = 25 -5p, where qq is quantity demanded of the firm's output (hundred units per day). The unit price is p (in dollars). The firm has two plants with the following cost functions: 4 3 Ci(q1) =597 +10 Ca(qz) = 1542 +6 a. Find the critical values of the firm's profit (q1, g2 ,p", ") b. Use the Hessian method to classify each point as a local maximum, local minimum or indeterminate (saddle point)

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