A firm produces output y by using capital k and labor l


A firm produces output, y, by using capital k and labor L, according to the production function : y = k^a.L^b. The firm can purchase all the capital and labor it wants at prices r and w, respectively. Use the Lagrange multiplier to find Cost function, c (r, w, y) find average and marginal cost.

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Business Economics: A firm produces output y by using capital k and labor l
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