Question: Help me work through part a Question 3: Recall that here is how you find the cost function: {i) First solve the cost minimization problem
Help me work through part a
Question 3: Recall that here is how you find the cost function: {i) First solve the cost minimization problem (but leave Qin as an unknown). This will give you the cost-minimizing bundle of inputs K and L. {ii) Then compute the costs associated with the cost-minimizing combination of K and L. (These costs will then obviously also be a function of Q!) Question $8: Derive the total, average and marginal long run cost functions for the production function: a) Q=K +1, if input prices are w, = 6Gandw, = 10. b) @ = 9X, if input prices are w, = Gl andw, = 9. c) Plot these functionsStep by Step Solution
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