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Consider the production function (, ) = 10L^0.25 K^0.25. The price of a unit of labour, L, is = 1. The price of a unit
Consider the production function (, ) = 10L^0.25 K^0.25. The price of a unit of labour, L, is = 1. The price of a unit of capital, K, is = 16. A) Find the conditional factor demand functions for labour and capital. B) Find the total cost function in the long run (when all factors of production are flexible). C) Find the firm-level supply function for a firm with the production function given above in a competitive market. What quantity will the firm choose to supply if the market price is 8
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