) Suppose we have the following production function: Q=K2/312/3. Does the technology have onstant returns to scale (CRS)? If not, what? Show your work and explain what it means. ) What is the firm's cost minimi on problem in the long-run? Explain and illustrate in a figure sing isocost and isoquants how termine optimal inputs K and L. ← ) Now, consider the short-run where K is fixed at 8 (so that K²/3 = 4). Let r = $20 and w = $10. Show en discuss how short-run average costs change as O rises. You can use math or a table/figure to do
) Suppose we have the following production function: Q=K2/312/3. Does the technology have onstant returns to scale (CRS)? If not, what? Show your work and explain what it means. ) What is the firm's cost minimi on problem in the long-run? Explain and illustrate in a figure sing isocost and isoquants how termine optimal inputs K and L. ← ) Now, consider the short-run where K is fixed at 8 (so that K²/3 = 4). Let r = $20 and w = $10. Show en discuss how short-run average costs change as O rises. You can use math or a table/figure to do
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.1P
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Solve parts d and e please
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