Compute the firm’s long-run cost function

Assignment Help Business Economics

Reference no: EM13741087

Assume a firm has production technology given by f(L,K) = L^1/3 K^1/3. Assume pK = 1 = pL and compute the firm’s short-run and long-run cost functions.

II. Assume a firm has production technology given by

f(L,K) = (max(L,K))^1/3 · (min(L,2K))^1/3

Assume pK = 2, pL = 1 and compute the firm’s long-run cost function.

Reference no: EM13741087

Questions Cloud

Phase of an application letter : Explain the function of each phase of an application letter written in the AIDA format.

What condition required the change in methodology : This discussion will require some thought. Reread the section on Nash Equilibrium. In all of the market structures except oligopoly, firms identified the level of output at which MR = MC, produced that level of output, and charged a price dictated by..

Home remodeling business : Suppose that the production function for Hannah and Sam’s home remodeling business is Q = F(L, K) = 10L0.2K0.3. If the wage rate is $1,500 per week and the cost of renting a unit of capital is $1,000 per week, what is the least-cost input combination..

Enhance employees knowledge and skills : Employees are valuable assets to an organization. How can human resource management support the organization to enhance employees knowledge and skills, to empower employees, and to build good teamwork?

Compute the firm’s long-run cost function : Assume a firm has production technology given by f(L,K) = L^1/3 K^1/3. Assume pK = 1 = pL and compute the firm’s short-run and long-run cost functions.

Online research on the ethics : Conduct online research on the ethics of your organization and the industry it belongs to.

What happens to his employment level : Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. How much labor does he employ if the price of each pizza is p = $12 and the hourly wage is w0 = $6? [Hint: In this case, i..

Basic resources and transforms them into finished products. : The important thing to know about production or operations is that the terms refer to any process that takes basic resources and transforms them into finished products.

What color palette did vermeer mostly use in painting girl : What color palette did Vermeer mostly use in the painting Girl with the Red hat?

User Account

All Pages