Question: Production function: Y=(KL)^alpha where 0 (c) (2) In the long run, Tingmei can adjust both of her inputs. To produce output y, what level of

Production function: Y=(KL)^alpha where 0

(c) (2) In the long run, Tingmei can adjust both of her inputs. To produce output y, what level of each input should she choose to minimize her costs? (d) (2) What is long-run marginal cost? (e) (2) Compute the elasticity of short-run and long-run marginal cost with respect to output. Which is more elastic? (f) (1) Tingmei's friend Ethan also runs a firm that employs capital and labor and can only adjust labor in the short run, but his firm may have a different production function. Will the conclusion from (3e) hold for Ethan's firm as well? You may assume that Ethan's production function is concave and exhibits complementarity between inputs

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