Question
Consider a firm with technology given byq=f(L,K)=L 2/3 K 1/3 . Capital is fixed atK=K=1in the short-run. The prices of output, labor and capital are
Consider a firm with technology given byq=f(L,K)=L2/3K1/3. Capital is fixed atK=K=1in the short-run. The prices of output, labor and capital are given by the constant vector:(p,w,r)=(6,2,1). How much should the firm produce to maximize profit in the short-run? (round your answer to one decimal place if necessary)
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Modern Principles Microeconomics
Authors: Tyler Cowen, Alex Tabarrok
4th Edition
1319098762, 978-1319098766
