Given the Cobb Douglas Production Function of F(K,L) = AKtalphaLt(1-alpha) and assume that A = 3, t = 1, w = 1, r = 1, alpha = .5 Find the short run minimum cost function when K is fixed Find the total cost Compare the short run cost function and long run function when q = 50
Given the Cobb Douglas Production Function of F(K,L) = AKtalphaLt(1-alpha) and assume that A = 3, t = 1, w = 1, r = 1, alpha = .5 Find the short run minimum cost function when K is fixed Find the total cost Compare the short run cost function and long run function when q = 50
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.7P
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Given the Cobb Douglas Production Function of F(K,L) = AKtalphaLt(1-alpha) and assume that A = 3, t = 1, w = 1, r = 1, alpha = .5
Find the short run minimum cost function when K is fixed
Find the total cost
Compare the short run cost function and long run function when q = 50
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