Question
Suppose a firm produces output using the technology Q=K1/3 L2/3 Find
a. The long run cost function
b. The short run cost function if capital is stuck at 10 units.
c. The profit maximizing level of output as a function of the price of the good, wages, rental rate on capital, the amount of capital, and some other numbers.
a. The long run cost function
b. The short run cost function if capital is stuck at 10 units.
c. The profit maximizing level of output as a function of the price of the good, wages, rental rate on capital, the amount of capital, and some other numbers.