3) Assume that a fim which produces an output according to the following function is attempting to minimize cost in the long run: q = f (K, L) = (0.5KV2 +0.5LV2)/2 a) Assuming K is fixed at 36, P=16, v=1, and w=1, what is the firm's short run cost function? Compute this firm's profit maximizing demand of L in the short run b) Compute this firm's cost minimizing (quantity constant) input demand functions. c) What are the firm's total cost and supply functions?

3) Assume that a fim which produces an output according to the following function is attempting to minimize cost in the long run: q = f (K, L) = (0.5KV2 +0.5LV2)/2 a) Assuming K is fixed at 36, P=16, v=1, and w=1, what is the firm's short run cost function? Compute this firm's profit maximizing demand of L in the short run b) Compute this firm's cost minimizing (quantity constant) input demand functions. c) What are the firm's total cost and supply functions?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 5E

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