Is this correct? > Suppose that, in the short run, Jabot's input L is variable and input K is fixed at> Also find the marginal and average products when Jabot chooses L* to minimize6.Jabot Company II: SR Cobb-Douglas ProductionKo. Find expressions for average cost, variable cost, and marginal cost.ouboot beithe total cost of Qo, given fixed Ko. MP,* and AP* are functions of w, r, and Qo.> The Jabot company's production function is:Q(L, K) = L½K½a. Rewrite the equation of the long run total cost from Problem (4d). Derive theequations of long run average and marginal cost:LTC= WL* +r k*LAC:リaarwしtCLTC =LAC =CAC- LTC ar'awリス@Qdue ar Va w/la QLMC = drLML=こb. Suppose K is fixed at Ko. Solve the production function for L to find the short runcost equations as functions of Q with parameters w, r, and Ko:Stcz wL trk,wiCQ%/Ko) r.koSTC =w Q/katr Ko /QwQ +r Koto KoSAC =wQKoKoAVC =AVC:SMC =Ko

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and average products when Jabot chooses L* to minimize Cost of Qo, given fixed Ko. MP* and AP* are functions of w, r, and Qo. The Jabot company's production function is: Q(L, K) = L²K² %D a. Rewrite the equation of the long run total cost from Problem (4d). Derive the equations of long run average and marginal cost: LTC: wL* +vヒ* LAC: LTC リa LTC = _dra CAC: LTC Qr'aw LAC = 2r"a w ar! da 2,V2 w'lail こ b. Suppose K is fixed at Ko. Solve the production function for L to find the short run cost equations as functions of Q with parameters w, r, and Ko: LMc= ditz 2r LML= LMC = Stcz wL trk, wi CQ/ko) v.ko STC = (+rk. wQ/kotr Ko /Q %3D 1メ+ wQ Ko SAC = to Ko KFr.ko AVC = Ko Smc= d u SMC =

and average products when Jabot chooses L* to minimize Cost of Qo, given fixed Ko. MP* and AP* are functions of w, r, and Qo. The Jabot company's production function is: Q(L, K) = L²K² %D a. Rewrite the equation of the long run total cost from Problem (4d). Derive the equations of long run average and marginal cost: LTC: wL* +vヒ* LAC: LTC リa LTC = _dra CAC: LTC Qr'aw LAC = 2r"a w ar! da 2,V2 w'lail こ b. Suppose K is fixed at Ko. Solve the production function for L to find the short run cost equations as functions of Q with parameters w, r, and Ko: LMc= ditz 2r LML= LMC = Stcz wL trk, wi CQ/ko) v.ko STC = (+rk. wQ/kotr Ko /Q %3D 1メ+ wQ Ko SAC = to Ko KFr.ko AVC = Ko Smc= d u SMC =

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.9P

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