Derive marginal and average cost

Reference no: EM132200309

Question: A firm produces output (Y) using two inputs, capital (K) and labor (L) according to the following production function Y-L +bkn(K) where b is a both positive numbers. What are the marginal products of capital and labor? What is the marginal rate of technical substitution? Derive the firm's conditional demand curves for capital and labor and its cost function (you should assume that the firm uses both labor and capital to produce its output). Derive marginal and average cost.

Reference no: EM132200309

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