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Suppose a firm has a production function given by Q=L^(1/2) x K^(1/2) Therefore MP(L) = (K^1/2)/(2 x L^(1/2)) MP(K) = L^(1/2) / (2 x K^(1/2))
Suppose a firm has a production function given by Q=L^(1/2) x K^(1/2) Therefore MP(L) = (K^1/2)/(2 x L^(1/2)) MP(K) = L^(1/2) / (2 x K^(1/2)) The firm can purchase labor, L at a price w = 9, and capital, K at a price of R = 16 A) What is the firms total cost function, TC(Q)? B) What is the firms marginal cost of production
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
2nd edition
134167879, 134167872, 9780134168319 , 978-0134167879
