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Could you please answer question 11 ? Thanks tempt 1 X There are two firms. One produces X and one produces Y and they have

Could you please answer question 11 ? Thanks

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tempt 1 X There are two firms. One produces X and one produces Y and they have the following production functions: Fx = K1/2 L1/4 and Fy = Ky + Ly where K is capital and L is labour. Which of the following equations could represent an interior solution for the contract curve for the inputs of capital and labour? O Kx = Lx O 1 Kx = 7Lx O Kx = 3Lx 1 O Kx = -Lx K.. = 2Lx

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