answer it correctly
- Please Do Not Copy Other Chegg Answers As They Are Wrong Please Answer It Correctly 1 (48.91 KiB) Viewed 72 times
Please do not copy other answers answers as they are wrong. Please answer it correctly
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answerhappygod
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Please do not copy other answers answers as they are wrong. Please answer it correctly
Please do not copy other answers answers as they are wrong. Please
answer it correctly
Question 2 (16 marks] Consider a firm that uses labour and capital as inputs for production accord- ing to some production technology y = f(KL). Let c(y, w,r) be the cost of producing y units of output if the wage rate is w and the cost of capital is r. Let L* and K* be the optimal capital and labour demand for producing y units. Prove that ac(y, w,r) ac(y, w,r) L* and = K* aw ar
answer it correctly
Question 2 (16 marks] Consider a firm that uses labour and capital as inputs for production accord- ing to some production technology y = f(KL). Let c(y, w,r) be the cost of producing y units of output if the wage rate is w and the cost of capital is r. Let L* and K* be the optimal capital and labour demand for producing y units. Prove that ac(y, w,r) ac(y, w,r) L* and = K* aw ar