Essay
Q = K1/2L1/2
w = $2,r = $2
The firm would like to know the maximum output that can be produced for $8,000.Find the combination of inputs that maximizes output for a cost of $8,000,the amount of output that can be produced,and identify the expansion path.
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MPL = 1/2 K1/2L-1/2 MPK = 1/2 K-1/2L1/2 Optimization requi...View Answer
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