A firm wants to minimize cost when Q=160=2√KL ;r=4 k=2 a) write out the Lagrangian function b) Find K* and L* c).Is the second-order sufficient condition for minimum satisfied?
A firm wants to minimize cost when Q=160=2√KL ;r=4 k=2 a) write out the Lagrangian function b) Find K* and L* c).Is the second-order sufficient condition for minimum satisfied?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A firm wants to minimize cost when Q=160=2√KL ;r=4 k=2
a) write out the Lagrangian function
b) Find K* and L*
c).Is the second-order sufficient condition for minimum satisfied?
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