8.34. A researcher has claimed to have estimated a long-run total cost function for the production of

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8.34. A researcher has claimed to have estimated a long-run total cost function for the production of automobiles. His estimate is that where w and r are the prices of labor and capital. Is this a valid cost function—that is, is it consistent with long-run cost minimization by the firm? Why or why not?

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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