Michelle runs a factory that produces mugs. Her production function isgiven by q LK. Michelle hires labor and rents capital in perfectly competitive8.markets where w = 1 and r = 64.(a)In the short-run, Michelle's capital stock is fixed at 1. Find an expressionfor Michelle's short-run supply curve.(b)Find an expression for Michelle's long-run supply curve.

Production function : q = L1/6K1/6 w = 1 , r = 64 The major difference between a short run and long…

3. given by q = LeK. Michelle hires labor and rents capital in perfectly competitive markets where w = 1 and r = 64. Michelle runs a factory that produces mugs. Her production function is %3D In the short-run, Michelle's capital stock is fixed at 1. Find an expression (a) for Michelle's short-run supply curve. (b) Find an expression for Michelle's long-run supply curve.

3. given by q = LeK. Michelle hires labor and rents capital in perfectly competitive markets where w = 1 and r = 64. Michelle runs a factory that produces mugs. Her production function is %3D In the short-run, Michelle's capital stock is fixed at 1. Find an expression (a) for Michelle's short-run supply curve. (b) Find an expression for Michelle's long-run supply curve.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.2P

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