Suppose that a firm has the following Cobb - Douglas production function: Q = 12K0.75L0.25. a. What
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a. What must its long-run total cost curve look like? Its long-run average total cost curve?
b. How do your answers to part (a) change if the firm's production function is Q = KL?
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a This Cobb Douglas production function exhibits constant returns to scale Hence ...View the full answer
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Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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