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A competitive firm has the production technology ?(ℓ, ?) = ℓ 0.2? 0.4 , where ℓ...

A competitive firm has the production technology ?(ℓ, ?) = ℓ 0.2? 0.4 , where ℓ is labour and ? is capital. The firm obtains labour and capital from competitive markets with wage rate ? and capital rent rate ?, respectively.

Calculate the long-run conditional demand functions for labour and capital; the longrun total, marginal, and average cost functions; and the supply function for this firm taking ? = ? = £1.

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