Suppose the production function for oranges is Q = k^1/3 L^1/3
a) What is the labor demand function when Q = 4 and r = 9 ?
b) What is the capital demand function when Q = 4 and w = 4 ?
c) What is the price elasticity of demand for capital when Q = 4 and
w = 4 in terms of r ?
Suppose the production function for pasta is Q = 4kl
(a) What is the long-run optimal input combination when Q = 16 , r = 4 , and w = 36 ?
(b) What is the long-run total cost function when r = 4 and w = 36 ?
(c) Does this cost function have increasing or decreasing returns to scale?