Derive the long-run cost functions

Reference no: EM13697535

Production function is F(K,L) = (K^0.3)(L^0.7), where k is capital and l is labor, whose prices are r = 0.5 and w = 1

A) Derive the long-run cost functions: total, marginal and average.

B) Assuming there are 100 firms in the market. What is the firm supply and what is the market supply in the long-run?

Reference no: EM13697535

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