Suppose the total cost function for a firm is given by C=qw²/31/3 where w and v are prices of a unit of labor and capital, and q is output (a) Use Shephard's lemma to compute the demand functions for each input I and k (as functions of q, v, w) [Hint: Partially differentiate C with respect to input price]

Suppose the total cost function for a firm is given by C=qw²/31/3 where w and v are prices of a unit of labor and capital, and q is output (a) Use Shephard's lemma to compute the demand functions for each input I and k (as functions of q, v, w) [Hint: Partially differentiate C with respect to input price]

Principles of Microeconomics

7th Edition

ISBN:9781305156050

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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