Microeconomics (9th Edition) (Pearson Series in Economics)
Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 7, Problem 6E
To determine

Identify the effect of changes in relative price of labor and capital on the expansion path.

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Given the production function for labor and capital: Q = L^2(K^2), and q = 100. If the firm wants to increase all inputs by a common factor t, where t> 0. What happens to the output that the firm produces?
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