12 3. Calculate the efficient production factor allocations for the following firms with thefollowing production technologies. In section (b) also draw the Production Edgeworth-Box.a) QA=Kı3 L12/3 (Firm A)QB = K21/2 L212 (Firm B)where the total fixed quantities are K = 3 and L = 2.b) Qa= 3K1+ L1 (Firm A)QB = min{K2, 2L2} (Firm B)where the total fixed quantities are K = 5 and L = 2.

Efficient production factor allocations are achieved at the point where marginal rate of technical…

3. Calculate the efficient production factor allocations for the following firms with the following production technologies. In section (b) also draw the Production Edgeworth-Box. a) QA= Kı3 L1213 (Firm A) QB = K21/2 L212 (Firm B) where the total fixed quantities are K = 3 and L = 2.

3. Calculate the efficient production factor allocations for the following firms with the following production technologies. In section (b) also draw the Production Edgeworth-Box. a) QA= Kı3 L1213 (Firm A) QB = K21/2 L212 (Firm B) where the total fixed quantities are K = 3 and L = 2.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.9P

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