Consider a perfectly competitive firm with the following production |0.25,0.25 function: q=L' a. Solve for the long run profit maximizing labor demand and capital demand functions. b. What is the profit maximizing long run firm supply function?

Consider a perfectly competitive firm with the following production |0.25,0.25 function: q=L' a. Solve for the long run profit maximizing labor demand and capital demand functions. b. What is the profit maximizing long run firm supply function?

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 3PA

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Question

Solve b

Consider a perfectly competitive firm with the following production
function: q=L025K0.25
a. Solve for the long run profit maximizing labor demand and capital demand
functions.
b. What is the profit maximizing long run firm supply function?

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