1. Suppose a firm, in a perfectly competitive market, with production function F(K, L) = min[4L, 3/] has only 6 units of capital. What is
1. Suppose a firm, in a perfectly competitive market, with production function F(K, L) = min[4L, 3/] has only 6 units of capital. What is their cost minimizing level of labor in the short run USR(q)? (5 points) (a) 1 (b) 4 -4 (c ) (d) 9 -63. A production function F(K, L) = KLIK+L has increasing returns to scale. Remember the scale factor is a > 1 (5 points) (a) TRUE (b) FALSE Explanation
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