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Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production functionF(K,L) = (K+2L)^(1/3). Input
Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production functionF(K,L) = (K+2L)^(1/3). Input prices arew=2 andr=3 for labor and capital respectively. It operates in a perfectly competitive environment facing a pricep=$48, and uses an initial amount of capitalK^ =12.
Compute the firm's short-run cost function. To verify that you have the correct short-run cost function, calculate the short-run cost of producing 8 units of ramen.
C(8)= ?
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