Q.1. Use production function q(L, K) = L K and derive the followings: (a) (b) 360€ (c) (d) Short-run and long-run profit functions Short-run and long-run cost functions Short-run and long-run supply function using Hotelling's lemma. Short-run and long-run supply function using Shephard's lemma.
Q.1. Use production function q(L, K) = L K and derive the followings: (a) (b) 360€ (c) (d) Short-run and long-run profit functions Short-run and long-run cost functions Short-run and long-run supply function using Hotelling's lemma. Short-run and long-run supply function using Shephard's lemma.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 11SQP
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Step 1: Define production function
VIEWStep 2: a) Compute the short run and long run profit functions
VIEWStep 3: b) Compute the short run and long run cost functions
VIEWStep 4: c) Compute the short run and long run supply functions using the Hotelling's lemma
VIEWStep 5: c) Compute the short run and long run supply functions using the Shephard's lemma
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