Question
F(K,L)= KL^3/4 (a) Whether the function is increasing, decreasing, or constant returns to scale (b) Contingent demands for L and K (assuming both are chosen
F(K,L)= KL^3/4
(a) Whether the function is increasing, decreasing, or constant returns to scale (b) Contingent demands for L and K (assuming both are chosen optimally by the firm) as a function of w, v and Q (c) The long run cost function and long run marginal cost as a function of w, v and Q (d) Contingent demand for L assuming K fixed at K = 64 (e) The short run cost function and short run marginal cost (for simplicity assume w and v are both equal to 1 for the rest of the question) (f) The short run supply curve for single firm (g) The partial equilibrium price given a single consumer with a utility function of U(x,y)=x^1/4y^3/4 and an income of l=1000, and a single firm with the given production function and K=64 (assume we are looking at the market for x) (h) The profit of the firm in equilibrium
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