Suppose I give you the following long run production function.
2 . Suppose I give you the following long run production functionQ = 1 1 /3 1 2 / 3The input prices for labour and capital are20 = $10 / hour= $20 / houra ) Find the optimal input bundle of capital and labourif I ask you to produce10 units of output . I am asking for numbers hereb ) What is the long run cost as a function of Q ?( ) Using your long run cost function , what is the long run marginal cost ?DVNow suppose that the production function is :Q = 1 1 13 1 1 13Do you expect long run marginal costs to be increasing , constant or decreaseing ? Why ?
