Question: Potato is produced according to the function: q= 10k/1-a where q is the quantity produced, k represents land and I represents the number of

Potato is produced according to the function: q= 10k/1-a where q is

Potato is produced according to the function: q= 10k/1-a where q is the quantity produced, k represents land and I represents the number of workers. The farmer is a price taker with respect to all prices. Assume a = 0.5. (a) Write the general form for the farmer's cost minimization problem. (b) Derive the conditional input demand functions for ke and le given this particular production function. (c) Derive the Total Cost Function. (d) Suppose wage of workers-9 and rent for land=4 and the farmer wants to produce q = the optimal land and labor demand. (e) Derive the Short-Run Total Cost Function. (f) Suppose the firm wants to increase the output level to 120. What is the labor and land demand in the short run? Show that short-run total cost is higher than long run total cost in that case. 100 units of output.Find

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a The farmers cost minimization problem is to minimize the total cost of producing a certain quantity of potatoes given the production function and the prices of inputs The general form of the cost mi... View full answer

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