If labor and capital inputs are perfect complements in


a) If labor and capital (inputs) are perfect complements in production, but 4 units of labor are needed per unit of capital, find the production and cost functions. Find the cost function for the general form of perfect complements, f(L, k) = min{aL, bk}.

b) If labor and capital (inputs) are perfect complements in production, but 4 units of labor are needed per unit of capital, find the production and cost functions. Find the cost function for the general form of perfect complements, f(L, k) = min{aL, bk}

c) A firm has a production function of y = f(L, k) = (√ L + √ k) 2 .

(1) Find expressions for the marginal product of labor and capital. (2) Find the cost function.

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Business Economics: If labor and capital inputs are perfect complements in
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