The Jabot company's production function is: Q(L, K) = L½K½ The target level of output is: Q = Qo The Jabot company's total cost function is: C(L, K) = wL + rK %3D a. Find and simplify expressions for MPL, MPK, and the marginal rate of technical substitution, MRTSKL. K MPL = &Lk's -'2 2 と MRTSKL = LM MPK = %3D IC = MRTSEL と,7 b. Write the tangency condition for a minimum of long run total cost, LTCmin. C= WL+rk %3D WK ol bns 81 bis St.0- ニ . Use the tangency condition and the cost function to solve for optimal L* and K* as functions of C*= LTCmin, W, and r.

The Jabot company's production function is: Q(L, K) = L½K½ The target level of output is: Q = Qo The Jabot company's total cost function is: C(L, K) = wL + rK %3D a. Find and simplify expressions for MPL, MPK, and the marginal rate of technical substitution, MRTSKL. K MPL = &Lk's -'2 2 と MRTSKL = LM MPK = %3D IC = MRTSEL と,7 b. Write the tangency condition for a minimum of long run total cost, LTCmin. C= WL+rk %3D WK ol bns 81 bis St.0- ニ . Use the tangency condition and the cost function to solve for optimal L* and K* as functions of C*= LTCmin, W, and r.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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