Question
3. [2.5 marks] Solve the cost-minimization problem: + + .. ( + ) 0 , , 0 Where is raw material, L labour, and K
3. [2.5 marks] Solve the cost-minimization problem: + + .. ( + ) 0 , , 0 Where is raw material, L labour, and K capital; and , , > 0, with + < 1 . Interpret the production function in this problem[Hint: use the Kuhn-Tucker conditions].
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
