Question: There is no demand function given. The production function is at the top. Thank you. Carmaker produces small cars in a perfectly competitive market using

top. Thank you. Carmaker produces small cars in a perfectly competitive market using labour (L) and capital (K). Carmaker's production function is given by There is no demand function given. The production function is at the top. Thank you.

Carmaker produces small cars in a perfectly competitive market using labour (L) and capital (K). Carmaker's production function is given by f(L,K) = min {0.05L, K12}, where Q is the number of cars produced. (c) [2 marks] Using the answer to part (C), we can show that Carmaker's supply function is of the following form: 9 = { (a + bp for p > AV Cmin 0 for p AV Cmin 0 for p

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