Question

Suppose that a firm has the cost function for a plant as

Q: Answer-Suppose that a firm has the cost function for a plant as given below C(w, r, q) = 0.5q(w+r) where q...

When expenditure cost function is given and we need to calculate production function. Then use Shepherds Lemma.

given below C(w, r, q) = 0.5q(w+r) where q is output, w is the cost of labour l and r is the cost of capital k. Find out the production function for the firm

A Q = 0.5L0.5K0.5

B Q = 2L+2K

C Q = min(2L,2K)

D Q = L + 0.5K

Practice Next

More International Trade Questions

Invisible drought occurs when
A type of grafting in which shallow, downward and inward cut ensuring V-shape incision in lower portion of rootstock and matching cut on the scion is ma...
Tea Mosquito Bug is the major pest of
Which of the following is NOT a Kharif season weed?
Which method is commonly used to break physical dormancy?
Match List I with List II

Choose the correct answ...
An advance form of organizational design is .............................?
An acute or chronic inflammation of the mammary gland caused by physical, chemical and biological agents chiefly of bovines usually affecting the secret...
Banana is propagated through:
The nutrient removed in maximum quantity by paddy crop is:

Suppose that a firm has the cost function for a plant as

Solution