Q1 assume that cookie producers create a positive

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Q1. Assume that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced?

Q2. Assume that the firm's production function is given by Q = 10KL1/3. The firm's capital is fixed at K. What amount of labor will the firm hire to explain its short-run cost-minimization problem?

Q3. Explain the solution to the firm's cost-minimization difficulty ever occur off the iso-quant representing the required level of output?

Reference no: EM13354497

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