Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is incorrect when firms use only labor and capital as their inputs in production? a) As output doubles long-run cost of

Which of the following is incorrect when firms use only labor and capital as their inputs in production?

a) As output doubles long-run cost of production always doubles regardless of the production functions

b) As we take the partial derivative of the long-run cots function with respect to the price of labor, we always obtain the conditional demand of labor

c) As we take the partial derivative of the long-run costs function with respect to the price of capital, we always obtain the conditional demand of capital

d) As price of labor (w) and price of capital (r) double, long-run cost always regardless of the production functions

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Intelligence

Authors: Jerzy Surma

1st Edition

1606491857, 9781606491850

More Books

Students also viewed these Economics questions

Question

f. What subspecialties and specializations does the person list?

Answered: 1 week ago

Question

5. Give examples of binary thinking.

Answered: 1 week ago