=+f. Given the substitutions you did in part (c), you can now write e 21,2b2 5 y*1a,
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=+f. Given the substitutions you did in part (c), you can now write e 21,2b2 5 y*1a, p, w, r2 and e
21k2g2 5 z*1a, p, w, r2. Take natural logs of both sides to solve for labor demand ,1w, r, p2 and capital demand k1w, r, p2 (which will be functions of the parameters
a, b, and g).
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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