The wage rate and rental rate on capital

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Reference no: EM13999822

A firm has a production function, q=AL^a K^(1-a), where 0<a<1. It wants to minimize cost for a given production q. The wage rate and rental rate on capital are w and r, respectively.

a. Write the Lagrangian expression for the cost minimization problem

b. Write the first-order conditions

c. Find the cost minimizing L and K

Reference no: EM13999822

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