Question
Consider a firm facing the following long-run cost functionC(q,w,r)=4wq4w2r wherewis cost of a labor unit andris cost of a capital unit.The firm usesLunits of labor
Consider a firm facing the following long-run cost functionC(q,w,r)=4wq4w2r
wherewis cost of a labor unit andris cost of a capital unit.The firm usesLunits of labor andKunits of capital.Which of the following statements are correct? (check all that apply)
a.K(q, w, r) = 4(w/r)^2
b.The underlying production function is not homogeneous
c.f(K, L)=K^1/2+4L
d.L(q, w, r)=4q-8(w/r)
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Dynamic Business Law
Authors: Nancy Kubasek
1st Edition
0073524913, 9780073524917
