Question

q(L,K)=2LK=100; w=25; v=50; TC=500 i. find the cost-minimizing input combinations (L*,K*) ii Based on part i...

q(L,K)=2LK=100; w=25; v=50; TC=500

i. find the cost-minimizing input combinations (L*,K*)

ii Based on part i grapg this cost minimization case

iii. Now assume that w=30 and v=50. explain what happens to our isocost and (L*,K*)

iv. Assume that w=25; v=50 repeat parts i and ii

a. q(L,K)=2L+K=100

b. q(L,K)=min(2L,K)=100

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Find the cost minimizing input combinations in the following problems: - f(k, ℓ) = 4k^3 ℓ^2...
Find the cost minimizing input combinations in the following problems: - f(k, ℓ) = 4k^3 ℓ^2 , r = 2, w = 1, q = 100 - f(k, ℓ) = min{2k, 3ℓ}, r = 2, w = 3, q = 10 2. In the above question, you found the cost minimizing input combination that produces 100 units of output. Now find the cost minimizing input combination for any positive quantity of output q to obtain the firm’s conditional factor demand...
1. Consider the production function q=K2L0.5   a) Find the cost minimizing quantities of K and L...
1. Consider the production function q=K2L0.5   a) Find the cost minimizing quantities of K and L for q = 100, r as the price of K and w as the price of L. b) Find the cost minimizing quantities of K and L for q = 1000, r as the price of K and w as the price of L. Explain whether or not the output expansion [change from part a) to part b)] is labor saving or capital saving.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT