2. Theory of the firm A firm has a production function q= f(k,l) = (k0.25 +10.25)2, w is the wage, and v is the rental rate of capital. In the short run, k is fixed at 0. The firm also faces a competitive output price p. a. Find contingent labor demand le. b. Find the cost function CSR(q). c. Find the profit maximizing quantity 9sR-

2. Theory of the firm A firm has a production function q= f(k,l) = (k0.25 +10.25)2, w is the wage, and v is the rental rate of capital. In the short run, k is fixed at 0. The firm also faces a competitive output price p. a. Find contingent labor demand le. b. Find the cost function CSR(q). c. Find the profit maximizing quantity 9sR-

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.2P

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