ethan1038 ethan1038
  • 12-03-2024
  • Mathematics
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A glass manufacturer's production function is q= 10L 0.5 K 0.5 (based o Hsieh, 1995). Its marginal product functions are MPL = 5K 0.5 (L 0.5) = 0.5q L a MPK = 5L 0.5 (K 0.5) = 0.5q K Suppose that its wage, w, is $1 per hour and the rental cost of capital, r, is $4.

A. Draw an accurate figure showing how the glass firm minimizes its costs of production.

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