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The Jabot company's production function is: Q(L, K) = L½K½ The target level of output is: Q = Qo The Jabot company's total cost function is: C(L, K) = wL + rK %3D a. Find and simplify expressions for MPL, MPK, and the marginal rate of technical substitution, MRTSKL. K MPL = &Lk's -'2 2 と MRTSKL = LM MPK = %3D IC = MRTSEL と,7 b. Write the tangency condition for a minimum of long run total cost, LTCmin. C= WL+rk %3D WK ol bns 81 bis St.0- ニ . Use the tangency condition and the cost function to solve for optimal L* and K* as functions of C*= LTCmin, W, and r.

The Jabot company's production function is: Q(L, K) = L½K½ The target level of output is: Q = Qo The Jabot company's total cost function is: C(L, K) = wL + rK %3D a. Find and simplify expressions for MPL, MPK, and the marginal rate of technical substitution, MRTSKL. K MPL = &Lk's -'2 2 と MRTSKL = LM MPK = %3D IC = MRTSEL と,7 b. Write the tangency condition for a minimum of long run total cost, LTCmin. C= WL+rk %3D WK ol bns 81 bis St.0- ニ . Use the tangency condition and the cost function to solve for optimal L* and K* as functions of C*= LTCmin, W, and r.

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.9P
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Could I have help or explanation on how to find the LTC min and L* and k*
The Jabot company's production function is: Q(L, K) = L'¼K½ The target level of output is: Q = Qo The Jabot company's total cost function is: C(L, K) = wL + rK %3D a. Find and simplify expressions for MPL, MPK, and the marginal rate of technical substitution, MRTSKL. MPL MPK MRTSKL = %3D 7,73 1/2 - MRTS KL b. Write the tangency condition for a minimum of long run total cost, LTCmin. C= WL+ rk %3D C. Use the tangency condition and the cost function to solve for optimal L* and K* as functions of C*= LTCmin, W, and r. L* = K* =
Transcribed Image Text:The Jabot company's production function is: Q(L, K) = L'¼K½ The target level of output is: Q = Qo The Jabot company's total cost function is: C(L, K) = wL + rK %3D a. Find and simplify expressions for MPL, MPK, and the marginal rate of technical substitution, MRTSKL. MPL MPK MRTSKL = %3D 7,73 1/2 - MRTS KL b. Write the tangency condition for a minimum of long run total cost, LTCmin. C= WL+ rk %3D C. Use the tangency condition and the cost function to solve for optimal L* and K* as functions of C*= LTCmin, W, and r. L* = K* =
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