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Unformatted text preview: y = 100 & 3 p (rather than y + x = 100 & 3 p ) . Edgaria&s production function is f ( k; l ) = k & l 1 & & , where & 2 (0 ; 1) . If Edgar chooses to produce, how much capital and labor should Edgar hire? What is the weakest condition under which Edgar will produce anything? 3. The demand facing Edgar&s rm, Edgaria, is given by q = ap e , where a > and e > . Suppose Edgaria&s production function is f ( k; l ) = ( k & l 1 & & ) , where & 2 (0 ; 1) and 2 (0 ; 1) . How much capital and labor should Edgar hire?...
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 Spring '08
 Govel

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