Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3.Suppose a firm's production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by:

3.Suppose a firm's production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by: MPL = (K^1/2)/(2L^1/2), and MPK = (L^1/2)/(2K^1/2)

a) If the price of labor is w = 48, and the price of capital is r = 12, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output Q = 18?

b)What is the firm's Total Cost function TC(Q)?

c) What is the firm's marginal cost of production?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics

Authors: Robert Carbaugh

15th edition

1285854357, 978-1305177093, 1305177096, 978-1285854359

More Books

Students also viewed these Economics questions