Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose that the production function is Q=10K+5L and thatMP L =5andMP K =10 . The price of Labour is $3 and t he price of
Suppose that the production function is Q=10K+5L and thatMPL=5andMPK=10
. The price of Labour is $3 and t he price of capital is $2.
- Findthe optimal input choice (L and K) if the firm wanted to produce 50 goods.
- Draw the Isoquant for Q=10 and Q=20
- Plot the expansion path on the diagram in b).
- Find the input demand function of L and K.(without knowing prices of Q, I want the general case)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started