EBK MICROECONOMIC THEORY: BASIC PRINCIP
12th Edition
ISBN: 8220103612135
Author: Snyder
Publisher: YUZU
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Chapter 14, Problem 14.7P
a)
To determine
To find: The output and price in the case of
b)
To determine
To find: Total loss of
c)
To determine
To find: The graph for the calculated results.
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2. A firm’s production function is given by:Q = 10KLThe unit capital and labour costs are 2 and 1 pounds respectively. The firm is contracted to produce2000 units.(a) Write out the optimisation problem of the firm. (b) Express this problem using a Lagrangian function. (c) Find values of K and L which fulfil the contract with minimal cost to the firm. (d) Calculate the total cost to the firm.
Chapter 14 Solutions
EBK MICROECONOMIC THEORY: BASIC PRINCIP
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