Quantcast

Got Homework?

Connect with other students for help. It's a free community.

  • across
    MIT Grad Student
    Online now
  • laura*
    Helped 1,000 students
    Online now
  • Hero
    College Math Guru
    Online now

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

chestnut17 Group Title

Suppose the production function of a firm is: Q =100L^0.5K^0.5 The price per unit of capital (r) and labor (w) are $40 and $50, respectively. a) Determine the type of returns to scale. b) If the firm is contracted to produce 1118 units of output, determine the quantity of capital and labor that the firm should use to minimize the total costs. c) Using bordered Hessian, prove that the second-order conditions for minimum is satisfied. d) Prove that the combination of capital and labor inputs derived in (b) is the efficient combination of capital and labor [Hint: Efficient combination of K and L is achieved when MPL/MPK= w/r].

  • 3 months ago
  • 3 months ago

  • This Question is Open
    • Attachments:

See more questions >>>

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.