5) Suppose we have the production functions: q = KL a.) Set up the appropriate Lagrangian and derive the long-run cost minimizing input demand functions. b.) Discuss the second order conditions. c.) Derive the firm's long-run Total, Average, Marginal cost and long-run supply functions.

5) Suppose we have the production functions: q = KL a.) Set up the appropriate Lagrangian and derive the long-run cost minimizing input demand functions. b.) Discuss the second order conditions. c.) Derive the firm's long-run Total, Average, Marginal cost and long-run supply functions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

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5) Suppose we have the production functions: q = KL
a.) Set up the appropriate Lagrangian and derive the long-run cost minimizing input
demand functions.
b.) Discuss the second order conditions.
c.) Derive the firm's long-run Total, Average, Marginal cost and long-run supply
functions.

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