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For each of the following production functions (ae) an- swer the following questions (i-v): i) Calculate the marginal products M'PL and .MPK. ii) Calculate JMRTSLIK
For each of the following production functions (ae) an- swer the following questions (i-v): i) Calculate the marginal products M'PL and .MPK. ii) Calculate JMRTSLIK and determine if this is dimin- ishing as good L increases. iii) If Q0 = 100, w = 8 and \"r = 2, determine long- run cost minimizing combination of labor and capital and the associated total cost. iv) If 62.3 = 100, w = 8 and r = 2, determine short- run cost minimising combination of labor and capital and the associated total cost if the rm is stuck with K = 4 unit of capital in the short run. 1:) Do we have too much or too little capital in the short run, and how much money is the rm losing by being stuck with K = 4 unit of capital in the short run? (a) Q (as) = IULWKW. (b) Q (L, K) : 4L2 + 4K2. (c) Q (L, K) = 4LK + 2K
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