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26 Mar 2018

Consider the following production function

q= f(k,l)= kl, where k is capital and l is labor used. Assume the k is fixed at 2 units. Rental rate of capital is given by r and wage rate of labor is given by w.

a) Are we in long run or short run? Why?

b) Find the Cost function for this firm.

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Keith LeannonLv2

28 Mar 2018

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Consider the following production function

q= f(k,l)= kl, where k is capital and l is labor used. Assume the k is fixed at 2 units. Rental rate of capital is given by r and wage rate of labor is given by w.

a) Are we in long run or short run? Why?

b) Find the Cost function for this firm.

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Consider the following production function q= f(k,l)= kl, where k is capital and l is labor used. Assume the k is fixed at 2 units. Rental rate of capital is given by r and wage rate of labor is given by w. a) Are we in long run or short run? Why? b) Find the Cost function for this firm.

Unlock all answers

Related textbook solutions

Principles of Economics

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Consider the following production function

q= f(k,l)= kl, where k is capital and l is labor used. Assume the k is fixed at 2 units. Rental rate of capital is given by r and wage rate of labor is given by w.

a) Are we in long run or short run? Why?

b) Find the Cost function for this firm.