Suppose that the production function of a firm is

q =

p

L + K

Q6a. (5 marks)

Derive the long-run conditional labor demand. Hint: it is the L that solves the

long-run cost minimization problem.

Q6b. (5 marks)

Derive the long-run conditional capital demand. Hint: it is the K that solves the

long-run cost minimization problem.

Q6c. (5 marks)

Plot the long-run expansion path (with K as the vertical axis, L as the horizontal

axis).