The production technology is fully characterized

Assignment Help Microeconomics
Reference no: EM13688127

Suppose that the production technology is fully characterized by the Cobb-Douglas
production function q = f (L,K) = ALαKβ with α+β < 1 and A,α,and β all greater than zero.
MPL = AαLα-1Kβ and MPK = AβLαKβ-1 .
(a) Does this production process have increasing, decreasing or constant returns to scale?
(b) Set up the cost minimization problem and solve for the conditional labor and capital demands.
(c) Derive the cost function and simplify the function as much as you can.

Reference no: EM13688127

Questions Cloud

What would be the internal rate of return for the project : What would be the internal rate of return for the project
What are the functions of money : What are the functions of money
The commercial bank balance sheet : What changes happen to the commercial bank's balance sheet?
Are credit cards or debit cards money : Are credit cards or debit cards money?
The production technology is fully characterized : The production technology is fully characterized
What is the inflation rate in 2009 : What is the inflation rate in 2009
The demand for labor is said to be a derived demand : The demand for labor is said to be a derived demand
What is the equilibrium interest rate : What is the equilibrium interest rate in the international capital market?
Carefully labeling slopes and intercepts : Carefully labeling slopes and intercepts

Reviews

Write a Review

Microeconomics Questions & Answers

  Which structure is most likely to occur in next twenty years

What is (are) the emerging structure(s) (not necessarily the final results) of increased economic interactions suggested by the interdependence, dependency and mercantilist perspectives

  Give the economic intuition of the results on consumption

Describe the behavior of consumption, investment, labor, productivity, wages, the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consu..

  Describe the firms in the proposed merger

In a separate group discussion board, present two arguments. The first should argue in favor of the proposed merger, from the perspective of the firms. The second agrues against the proposed merger from the perspective of the broader public intere..

  Assume the economy is at short-run equilibrium and is in a

assume the economy is at short-run equilibrium and is in a slump. ceteris paribus what would you expect to happen to

  Is the federal funds rate currently too high or too low

Suppose that the economy is thought to be 2 percent above potential (that is, the output gap is 2 percent) when potential output grows 4 percent per year. Suppose also that the Fed is following the Taylor rule, with an inflation rate of 2 perce..

  How do local laws local taste preferences and local culture

generally speaking many companies are interested in the potential cost savings of using the same product and

  Explain is there nash equilibrium in given problem if so

suppose two competitors coa inc. and han inc. are locked in a bitter pricing struggle in the aluminum industry. in

  The political economy of imf lending in africa

A critique of "The Political Economy of IMF Lending in Africa" by Randall Stone 2004

  How the economist reported that frances real exchange rate

In 2005, The economist reported that France's real exchange rate had increased relative to Germany's real exchange rate during the preceding two years. How can this be true if both France and Germany used the euro as their currency.

  The government is considering undertaking one of the four

the government is considering undertaking one of the four projects a1 a2 a3 a4. these projects are mutually exclusive

  What is total u.s. government revenue

What is total U.S. government revenue from the tariff and if trade opens up, what will be the quantity of U.S. imports?

  Current public policies favored by william stanley jevons

Critique or defend two (2) of Jevons' views on public policy. Substantiate your position with evidence of the success or failure of current public policies favored by William Stanley Jevons.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd