Consider a firm with the following production function: Q = F(K, L) = L2 K2 where K is the amo
Question: Consider a firm with the following production function:
Q = F(K, L) = L2 K2where K is the amount of capital and L is the amount of labor used in production. w is the wage for labor and r is the rental rate of capital.
(a) In the long-run, what is the cost minimizing level of capital and labor?
(b) When w=80 and r=80, what is the firm’s long-run total cost? What is its long-run
average cost?
Price: $2.99
Solution: The solution consists of 2 pages
Deliverable: Word Document
Deliverable: Word Document
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