Let q lalpha kbeta suppose the firm seeks to produce a
Let Q= Lα Kβ. suppose the firm seeks to produce a given output while minimizing its total input cost. TC=Pι L + P κK. Show that the optimal quantities of labor and capital satisfy L/K=(α/β) (Pκ/Pι). Provide an intuitive explanation for this result.
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let q lalpha kbeta suppose the firm seeks to produce a given output while minimizing its total input cost tcpiota l p
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question 1 under the assumptions of perfect competition price acts as a rationing mechanism and one market
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