Question
Given Q=4x 1/2 +2y 1/2 . P, Wx, and Wy are prices for output, input x, and input y respectively. MPx=2 x -1/2 and MPy=
- Given Q=4x1/2+2y1/2. P, Wx, and Wy are prices for output, input x, and input y respectively. MPx=2 x-1/2and MPy= y-1/2.
a) Show that the technology exhibits decreasing return to scale.
b)Derive the short run cost function.
c)Find the long run demand function of x and supply function of Q.
d)Derive the long run total cost function.
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Econometric Analysis
Authors: William H. Greene
7th edition
131395386, 131395381, 978-0131395381
