10.7 Suppose the total-cost function for a firm is given by C qv 2 ffiffiffiffiffi...

10.7 Suppose the total-cost function for a firm is given by C ¼ qðv þ 2 ffiffiffiffiffi vw p þ wÞ:

a. Use Shephard’s lemma to compute the (constant output) demand function for each input, k and l.

b. Use the results from part

(a) to compute the underlying production function for q.

c. You can check the result by using results from Example 10.2 to show that the CES cost function with s ¼ 0.5, r ¼ #1 generates this total-cost function.