Unformatted text preview: d. Find FLOPPY’s long run total cost curve. Let w=price of labor and r=price of kapital. e. Find DISK’s short run total cost curve assuming that K=9. 2. Given a common wage rate for labor, w, and rental rate for kapital, r, how would the long run total cost function for the production function: x = min{K, L} compare its short run total cost functions? 3. Why are monotonic transformations of utility functions OK but monotonic transformations of production functions are not, in all other way they look and feel the same? Econ 313.1  Wissink  Fall 2005 PS#4  XtraQ DUE: Wednesday Oct 19 at the START of class....
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 Fall '06
 MASSON
 Economics, rental rate, total cost curve

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