Question: Question 4 . ( 1 5 pts . ) A U . S . firm is considering to optimize its production. It's production function is
Question pts A US firm is considering to optimize its production. It's production function is q L K where q is the output, L is the number of labor, and K is the number of capital employed. The prices of labor and capital are w and r
a Find the equation of the firm's isoquant with output level of Draw it on a clearly labelled graph. pts
b What is the long run expansion path? Find the equation condition that explains the expansion path and draw it pts
c If the capital is fixed at mathrmK what is the short run expansion path? Find the equation condition that explains the expansion path and draw it pts
d How much does it cost to product units of output in the long run? How about with capital fixed at mathrmK Make sure to draw the relevant isoquants and isocosts pts
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