For the production function in exercise 1, let the price of labor be w and the price
Question:
a. The efficient usage function for labor is L* = __________________ .
b. The efficient usage function for capital is K* = __________________ .
c. Find the long-run cost functions: LTC, LAC, and LMC.
d. Show that both LAC and LMC increase at any Q when either w or r increases.
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Related Book For 
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021718
11th edition
Authors: Christopher Thomas, S. Charles Maurice
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