Question
A firm has a Cobb-Douglas production as follows: F(L,K)=(LK)^1/3 ** Part a (5 marks) Show that the production function is exhibiting diminishing marginal product of
A firm has a Cobb-Douglas production as follows:
F(L,K)=(LK)^1/3
** Part a (5 marks)
Show that the production function is exhibiting diminishing marginal product of Labor.
** Part b (5 marks)
Suppose that KK is fixed at K=1. Suppose that p=1,w=1,r=1. Find the L in the short-run given q as L(q)
** Part c (5 marks)
Following Part b, find the short-run cost function.
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Labor Economics
Authors: George J. Borjas
6th edition
73523208, 2900073523209 , 978-0073523200
