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 short-run total cost function. c) Find the short run-average cost and the short-run marginal cost of labor. Now consider long-run 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 long-run average cost and the long-run marginal cost of both inputs....
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This note was uploaded on 11/09/2011 for the course ECON 11 taught by Professor Cunningham during the Fall '08 term at UCLA.
- Fall '08