Suppose that the rental rate on Capital equals k^1/2, and the wage rate equals 9. The firms production function is given by Q = (L^1/2)(k^1/3) (A) Please derive the expansion path. (B) Derive the Cost function. Please show your work and explain.
Suppose that the rental rate on Capital equals k^1/2, and the wage rate equals 9. The firms production function is given by Q = (L^1/2)(k^1/3) (A) Please derive the expansion path. (B) Derive the Cost function. Please show your work and explain.
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.7P
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Suppose that the rental rate on Capital equals k^1/2, and the wage rate equals 9. The firms production function is given by Q = (L^1/2)(k^1/3)
(A) Please derive the expansion path.
(B) Derive the Cost function. Please show your work and explain.
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