Question
A firm uses labor (denoted by L) and computers (denoted by K) to design apps (in this case the output). The number of apps is
A firm uses labor (denoted by L) and computers (denoted by K) to design apps (in this case the output). The number of apps is denoted by Q. The firm's production function is Q(K,L)=9L^(1/3) K^(2/3). The price of labor (w) is $5 and the price of capital (r) is $20. The cost function of the firm is:
C(Q)=9+30Q
C(Q)=(10/3)Q
C(Q)=3+(2/3)Q
C(Q)=(10/3)Q+(40/3)Q
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Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
2nd Edition
0324113641, 9780324113648
