A firm's production function is Q = K (L + 1), where L is hours of labor hired and K is K and MPK = L+ 1. The $10 per hour. (Round hours of capital hired. For this production function, MPL $5 per hour and the rental rate of capital is r = price of labor is w = answers to two decimals if necessary.) Assuming an interior solution, the long run demand for labor is L = (This may be a function of Q) Assuming an interior solution, the long run demand for capital is K = (This may be a function of Q.) Suppose the firm needs to produce Q = 50 units, then their long run total cost is $

A firm's production function is Q = K (L + 1), where L is hours of labor hired and K is K and MPK = L+ 1. The $10 per hour. (Round hours of capital hired. For this production function, MPL $5 per hour and the rental rate of capital is r = price of labor is w = answers to two decimals if necessary.) Assuming an interior solution, the long run demand for labor is L = (This may be a function of Q) Assuming an interior solution, the long run demand for capital is K = (This may be a function of Q.) Suppose the firm needs to produce Q = 50 units, then their long run total cost is $

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.9P

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