1). Consider the production function Q= 10*L0.4 * K0.5 a.) Find the marginal product of labor....
1). Consider the production function Q= 10*L0.4 * K0.5
a.) Find the marginal product of labor.
b.) Find the marginal product of capital.
c.) Is there diminishing marginal product of capital?
d.) Find MRTS.
e.) If w = 10 and r = 20, find the relationship between optimal level of capital and labor to be used.
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1). Consider the production function Q= 10*L0.4 * K0.5
a.) Find the marginal product of labor....
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1. An engineering firm has estimated the production function for your firm to be Q = VKL. This production function has marginal products given by MP = 0.5 MPx = 0.55 resulting in MRTS = K/L. The price of capital is r and the price of labor is w. In the short run, capital is fixed at K = 36 a. Find the short run production function. b. Find the short run cost function. c. Ifr = 100 and w...
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