A firm's production is given by f(L, K) =;min(3L, 2K), and it faces input prices w = $30/hr and r = $10/hr. Solve the long-run cost minimization problem, to obtain input demand functions L* and K*. а.

A firm's production is given by f(L, K) =;min(3L, 2K), and it faces input prices w = $30/hr and r = $10/hr. Solve the long-run cost minimization problem, to obtain input demand functions L* and K*. а.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.6P

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A firm's production is given by f (L, K) =
$30/hr and r =
$10/hr.
Solve the long-run cost minimization problem, to obtain input demand functions L* and K*.
min(3L, 2K), and it faces input prices w =
S
6.
а.

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