Consider the production function Q = LK, with marginal products MPL = K and MPK = L.

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Consider the production function Q = LK, with marginal products MPL = K and MPK = L. Suppose that the price of labor equals w and the price of capital equals r. Derive expressions for the input demand curves.

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Question Posted: Mar 17, 2016 04:54 AM

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Consider the production function Q = LK, with marginal products MPL = K and MPK = L.

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From the tangency condition we get Substi...View the full answer

Microeconomics

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