A firm has the linear production function Q = 3L + 5K, with MPL = 3 and

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A firm has the linear production function Q = 3L + 5K, with MPL = 3 and MPK = 5. Derive the expression for the 1ong-run total cost that the firm incurs, as a function of Q and the factor prices, w and r.

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Question Posted: Mar 17, 2016 04:56 AM

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A firm has the linear production function Q = 3L + 5K, with MPL = 3 and

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linear production functions usually have corner solutions In this case th...View the full answer

Microeconomics

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