Question
A firms production function is given by F(L,K) = L 1/3 K 1/3 . You also know that wage rate is $3, the price of
A firms production function is given by F(L,K) = L1/3K1/3. You also know that wage rate is $3, the price of capital is $3, and the price of product is $432.
In the SHORT-RUN, capital is fixed at 27 unit. How much profit is the firm making in the SHORT RUN?
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Mathematical Economics
Authors: Wade Hands, D Wade Hands
2nd Edition
0195133781, 9780195133783
