ECON 100B Lecture Notes - Lecture 8: Isocost, Horse Length
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Step 1 find l (q, k (bar) ) q = [ l(q, 4) ] 2/5 4 1/5 q 5/2 = l (q, 4) 4 = 2 l (q, 4) L (q, 4) = q 5/2 / 2. Step 2 c sr (q) = wl (q, k (bar) ) + rk(bar) Mc (q) = w / 2 * 5/2 * q 5/2 -1 = 5/4 * wq 3/2 = 5/2 avc (q) Ac (q) = w / 2 q 5/2 / q + 4r / q = wq 3/2 / 2 + 4r/q. Avc (q) = wq5/2 / 2 / q = wq3/2 / 2. K:{0, 2}, l1, l2 f (l1, l2, k) = k2 min{l1, l2 r = 200, w1 = 5, w2 = 6: calculate c lr. If q = 0, k* = l1* = l2* = 0 and c lr (0) = 0. Considers q > 0, then k* (q) = 2.
