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You will work with the production function: FpK, Lq AKL 1. Let K be capital, L labor, w is the wage (the price of
You will work with the production function: FpK, Lq" AKL 1. Let K be capital, L labor, w is the wage (the price of one unit of labor), and r is the rental rate (the price of one unit of capital. What is the elasticity of input demand with respect to the wage w holding output constant? with respect to output Y? Using the Demand functions derived above, solve for the Cost function.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
