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A firm has the production function Q LK. For this production function, MPL K and MPK L. The firm initially faces input prices w $1
A firm has the production function Q LK. For this production function, MPL K and MPK L. The firm initially faces input prices w $1 and r $1 and is required to produce Q 100 units. Later the price of labor w goes up to $4. Find the optimal input combina- tions for each set of prices and use these to calculate the firm's price elasticity of demand for labor over this range of prices
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Latin America's Economy Diversity, Trends, And Conflicts
Authors: Eliana Cardoso, Ann Helwege
1st Edition
0262531259, 9780262531252
