Microecon. Production function is given by F (L,K,M) = K^(1/6) L^(1/3) M^ (1/3).
The price of capital, labor and materials are r, w, and m respectively. (1) In the short run, the amount of capital is fixed at k=k0. What are the conditional demand functions for labor and materials in the short run? (2) what is the short run total cost function? For what scales of production does it exhibit economies of scale?