Question
Suppose a firm has a production function given by Q = L^1/2 K^1/2.Therefore, The firm can purchase labor, L at a price w = 36,
Suppose a firm has a production function given by Q = L^1/2 K^1/2.Therefore,
The firm can purchase labor, L at a price w = 36, and capital, K at a price of r = 9.
a) What is the firm's Total Cost function, TC(Q)?
b) What is the firm's marginal cost of production?
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Macroeconomics Principles and Applications
Authors: Robert E. Hall, Marc Lieberman
6th edition
1111822352, 1111822354, 9781133708742 , 978-1111822354
