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Suppose the wage is $12 and the cost of capital is $3, and we have the following production function: Q=L 0.5 K 0.5 Find your
- Suppose the wage is $12 and the cost of capital is $3, and we have the following production function: Q=L0.5K0.5
- Find your cost minimizing level of K and L if Q=10.
- What is your long run cost in a?
- Draw a graph that shows the isoquant and isocost that minimizes costs.
- Suppose the cost of capital increases. How will the level of K and L and the graph change? Draw it.
- Now suppose you are in SR and your K is fixed at 1. What level of L must you use? What is the cost in the short run?
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Economic Change In Asia Implications For Corporate Strategy And Social Responsibility
Authors: M Bruna Zolin, Bernadette Andreosso O'Callaghan, Jacques Jaussaud
1st Edition
1317286650, 9781317286653
