Cost function have increasing or decreasing returns to scale

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Reference no: EM13840157

1. Suppose the production function for oranges is Q = k^1/3 L^1/3

(a) What is the labor demand function when Q = 4 and r = 9 ?

(b) What is the capital demand function when Q = 4 and w = 4 ?

w = 4 in terms of r ?

2. Suppose the production function for pasta is Q = 4kl

(a) What is the long-run optimal input combination when Q = 16 , r = 4, and w = 36 ?

(b) What is the long-run total cost function when r = 4 and w = 36 ?

Reference no: EM13840157

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