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Assume that a firm faces the following production function-
q(L,K) = L^(1/4) * K^(3/4)
a) Derive the Iso-quant curve for this firm.
b) Derive the Expansion path for the firm if w=1 and r=3.
c) Derive the short term cost function for a give level of k = 3.
d) Derive the long run cost function if w=1 and r=3
e) What is the optimal capital and labor if you want to produce 500 units of output?
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An insurance market may fail to exist due to asymmetric information and adverse selection that results from it. Suppose that state law prevents car buyers from taking the offered car for independent quality verification for fear of discrimination tow..
The text noted that money performs three basic functions. Select one of these functions and describe the ways rapid inflation could undermine money's ability to perform the function you selected.
Clarify what happened to the profit maximizing output rate when input costs were increased.
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El Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from El Paso County Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in fu..
In recent yrs, persons also state governments have sued various tobacco companies to compensate for illness also injury allegedly cause d by cigarette smoking.
Two identical firms, Firm 1 and Firm 2, compete in quantity in a market where inverse demand is P(Q) = 100 − Q and there exists a constant marginal cost of 20 per unit. Find the Cournot equilibrium. Find the response functions q1(q2) and q2(q1)
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