A firm has a production function q = min [L-OKO.6 2M] (a) Find the firm's optimality condition for its factor mix of K andL given that it wants to produce amount q* of output. (b) Calculate the firm's long run cost function C(q) and interpret it. (c) If all firms in a particular industry have this production function, what would this imply about

A firm has a production function q = min [L-OKO.6 2M] (a) Find the firm's optimality condition for its factor mix of K andL given that it wants to produce amount q* of output. (b) Calculate the firm's long run cost function C(q) and interpret it. (c) If all firms in a particular industry have this production function, what would this imply about

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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