Consider the C -Douglas production function q a. Find the RTS and show that it is decreasing in l. Plot the isoquant with k on the y-axis and l on the x-axis. b. Find the contingent demand for capital and labor. That is, find the quantities of capital and labor that will minimize cost for a given output qo. To produce twice the quantity how much do capital and labor have to change? What does this sayv about returns to scale?

Consider the C -Douglas production function q a. Find the RTS and show that it is decreasing in l. Plot the isoquant with k on the y-axis and l on the x-axis. b. Find the contingent demand for capital and labor. That is, find the quantities of capital and labor that will minimize cost for a given output qo. To produce twice the quantity how much do capital and labor have to change? What does this sayv about returns to scale?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.14P

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