7.24. Consider the production function For this production function, and Derive the input demand curves for L

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7.24. Consider the production function For this production function, and Derive the input demand curves for L and K, as a function of the input prices w (price of labor services)

and r (price of capital services). Show that at an interior optimum (with K # 0 and L # 0) the amount of L demanded does not depend on Q. What does this imply about the expansion path?

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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