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
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
 cunningham
 Economics

Click to edit the document details