Cost minimization1

Cost minimization1 - 40 2.5 8 45 2.22 50 2 55 1.82 60 1.67...

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Set up solver and solve for cost minimization given the production function w 20 q = 10L^.5*K^.5 r 80 Output 100 exp w 0.5 exp r 0.5 A B D E F C 1 Labor (L) Capital (K) Desired Output w r Production Function 2 100 20 80 0.00

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G Cost 0.00
Labor (L) Capital (K) Desired Output w r Production Function Cost 100 20 80 0.00 0.00 =10*\$A\$2^.5*\$B\$2^.5 =A2*D2+B2*E2 If on the test….

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Set up solver and solve for cost minimization given the production function w 20 q = 10L^.5*K^.5 r 80 Output 100 exp w 0.5 exp r 0.5 A B D E F C 1 Labor (L) Capital (K) Desired Output w r Production Function 2 20.00 5.00 100 20 80 100.00
G Cost 800.00

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q = 10L^.5*K^.5 w1 20 Output1 100 r1 80 Cost1 800 K = C/r - w/r*L w = 20 L K 0 10 40 0 q = 10L^.5*K^.5 5 20 10 10 15 6.67 20 5 25 4 30 3.33 35 2.86 40 2.5 45 2.22 50 2 55 1.82 60 1.67 0 10 20 30 40 50 60 70 0 5 10 15 20 25 Labor Capital
q = 10L^.5*K^.5 w1 20 Output1 100 w2 100 Output2 100 r1 80 Cost1 800 r2 80 Cost2 800 K = C/r - w/r*L w = 20 w = 40 L K L K 0 10 0 10 40 0 8 0 q = 10L^.5*K^.5 5 20 w2 100 Output2 100 10 10 r2 80 Cost2 800 15 6.67 20 5 25 4 w = 40 30 3.33 L K 35 2.86 0 10

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Unformatted text preview: 40 2.5 8 45 2.22 50 2 55 1.82 60 1.67 10 20 30 40 50 60 70 5 10 15 20 25 Isocost & Isoquant Line Labor Capital Set up solver and solve for cost minimization given the production function w 100 q = 10L^.5*K^.5 r 80 Output 100 exp w 0.5 exp r 0.5 A B D E F C 1 Labor (L) Capital (K) Desired Output w r Production Function 2 8.94 11.18 100 100 80 100.00 G Cost 1,788.85 q = 10L^.5*K^.5 w1 20 Output1 100 w2 100 Output2 100 r1 80 Cost1 800 r2 80 Cost2 800 K = C/r - w/r*L w = 20 w = 40 L K L K 10 10 40 8 q = 10L^.5*K^.5 5 20 w2 100 Output2 100 10 10 r2 80 Cost2 800 15 6.67 20 5 25 4 w = 40 30 3.33 L K 35 2.86 10 40 2.5 8 45 2.22 50 2 55 1.82 60 1.67 10 20 30 40 50 60 70 5 10 15 20 25 Isocost & Isoquant Line Labor Capital...
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This note was uploaded on 11/13/2009 for the course ECON 181 taught by Professor Kasa during the Spring '07 term at Berkeley.

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Cost minimization1 - 40 2.5 8 45 2.22 50 2 55 1.82 60 1.67...

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