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A firm produces computers with two factors of production: labor(1) and capital (k). Its technology is represented by the production function y = 0.1lk
A firm produces computers with two factors of production: labor(1) and capital (k). Its technology is represented by the production function y = 0.1lk Suppose that the prices of the inputs are 10 and 100 dollars, respectively. What is the firm's long run supply curve? Suppose further that the amount of capital is fixed at 1 unit. What is the firm's short run supply curve?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
