Suppose a rm has the following production function: x = KH'LI and wk = on = 51. Suppose K is held fixed at 1. Derive
Suppose a rm has the following production function: x = KH'LI" and wk = on = 51. Suppose K is held fixed at 1. Derive the short-run supply curve. Which is more elastic, the short-run or the long-run supply curve? For what output level is K = 1 the optimal plant size
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