Question
Suppose a firm has a production function of fixed proportions: f(K,L) = [min{L, 3K}] 1 / 2 (a) Find the conditional demands for capital (K)
Suppose a firm has a production function of fixed proportions:
f(K,L) = [min{L, 3K}]1/2
(a) Find the conditional demands for capital (K) and for labor (L) when the price of capital is K and the price of labor L.
(b) Find the long-run cost function. Explain what this function represents.
(c) Plot the firm's supply function. Show your calculations
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Microeconomics
Authors: Christopher T.S. Ragan
16th Canadian Edition
0134835832, 978-0134835839
