Suppose a firm's production function is given by Q = 10L0.2 K (1-0.2) Wage rate is $10 and rental rate is $5. Derive the function of the output expansion path. Show all work and upload your work in Question 4. (You don't need to draw a graph.) The slope of the expansion path is equal to (round your answer to two decimal places)

Suppose a firm's production function is given by Q = 10L0.2 K (1-0.2) Wage rate is $10 and rental rate is $5. Derive the function of the output expansion path. Show all work and upload your work in Question 4. (You don't need to draw a graph.) The slope of the expansion path is equal to (round your answer to two decimal places)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.5P

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