1. Suppose the total-cost function for a firm is given by C = qw²/3v!/3. a. Use Shephard's lemma to compute the (constant output) demand functions for inputs I and k. b. Use your results from part (a) to calculate the underlying production function for q (q as a function of "k" and "I").
1. Suppose the total-cost function for a firm is given by C = qw²/3v!/3. a. Use Shephard's lemma to compute the (constant output) demand functions for inputs I and k. b. Use your results from part (a) to calculate the underlying production function for q (q as a function of "k" and "I").
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.6P
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Transcribed Image Text:1. Suppose the total-cost function for a firm is given by C = qw²/3v!/3.
a. Use Shephard's lemma to compute the (constant output) demand functions
for inputs I and k.
b. Use your results from part (a) to calculate the underlying production
function for q (q as a function of "k" and "I").
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