Suppose q=L 1/3 K 1/6 A 1/18 . You get to choose the L,K, and A and
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Question:
Suppose q=L1/3K1/6A1/18. You get to choose the L,K, and A and the cost of these inputs are w, r, and m, respectively.
a- what type of returns to scale does this production function have?
b- write down the lagrange for the cost minimization problem and find the first order conditions.
c- Write down the profit equation in terms of L,K, and A for this firm and find the first order conditions.
d-describe what you would do to find the profit function for this firm
Related Book For
McGraw-Hill Education SAT 2017
ISBN: 9781259641657
1st Edition
Authors: Christopher Black, Mark Anestis
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