I need help with F&G ONLY. I don't need help with A-E so if you...

90.2K

Verified Solution

Question

Accounting

I need help with F&G ONLY. I don't need help with A-E so if you post any answers other than F&G, ill be downvoting it.
image
Suppose that a firm's production function is given by Q=(K1/3+L1/3), here is a given parameter. (a) Find the marginal product of capital and labor. (b) Find the average product of capital and labor. (c) Does this production function have increasing, constant or decreasing returns to scale? Show how the returns to scale result depends on the parameter . (d) Find the marginal rate of technical substitution (RTS) (e) Use your result in (d) to find the elasticity of substitution. For the next two questions, suppose =3. (f) Assume that capital is fixed in the short run, we know that K=K. Set up the cost minimization problem of the firm and solve for the conditional demand for L. Find the short run cost function. (g) Assume that the firm can choose both, capital and labor. Set up the cost minimization problem of the firm and solve for the conditional demand for K and L. Find the cost function

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students