This preview shows page 1. Sign up to view the full content.
Unformatted text preview: K ). a) Write down the cost minimization problem that Microhard has to solve in the short run. b) Find the contingent demand function for labor and the corresponding shortrun total cost function. c) Find the short runaverage cost and the shortrun marginal cost of labor. Now consider longrun decisions, where we are free to choose the optimal amount of labor and capital. d) Write down the cost minimization problem that Microhard has to solve in the long run. e) Find the contingent demand function for labor and capital and the corresponding total cost function. f) Find the longrun average cost and the longrun marginal cost of both inputs....
View Full
Document
 Fall '08
 cunningham
 Economics

Click to edit the document details