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28 Sep 2019
6. A firm has a production function such that y = KL + 2L. The marginal product of K is L, and marginal product of L is K+2.
(a) Find the conditional input demand functions for K and L.
(b) Find the cost function, given that the price per unit of K is r and the price per unit of L is w. Just to be clear, you need an expression showing the cost for any given level of output y expressed in terms of w, r and y.
(c) Does this production function have increasing, decreasing or constant returns to scale?
6. A firm has a production function such that y = KL + 2L. The marginal product of K is L, and marginal product of L is K+2.
(a) Find the conditional input demand functions for K and L.
(b) Find the cost function, given that the price per unit of K is r and the price per unit of L is w. Just to be clear, you need an expression showing the cost for any given level of output y expressed in terms of w, r and y.
(c) Does this production function have increasing, decreasing or constant returns to scale?
Samantha BalandoLv7
28 Sep 2019
