0(L, K) = 50K2Lī, where K is capital and L is labour. The marginal products are MPL 5KLi, and MP 50-iLi. Assume that a haircut has the price, p, that the cost of purchasing labour is wi and the cost of purchasing capital is r. We will also assume that in the short run that capital is held constant. What is the equation for a short run isoprofit line?

0(L, K) = 50K2Lī, where K is capital and L is labour. The marginal products are MPL 5KLi, and MP 50-iLi. Assume that a haircut has the price, p, that the cost of purchasing labour is wi and the cost of purchasing capital is r. We will also assume that in the short run that capital is held constant. What is the equation for a short run isoprofit line?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter19: Labor And Entrepreneurship: The Human Inputs

Section: Chapter Questions

Problem 4TY

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