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马 捷_第五次作业.doc (49 KB)

2009-11-26 22:37:28 上传

1.
Primo Fungi’s production function isQ= 8*（KL）的开方( Primo Fungi’s product is mushroom). The firm must pay input prices of $3 and $27 per unit, for capital and labor, respectively. Please answer the following questions:
(1) What is Primo Fungi’s long-run cost function?
(2) What is Primo Fungi’s long-run cost function if its input of capital is fixed at k=4?
(3) Show that Primo Fungi’s long-run supply curve is more elastic than its short-run supply curve when its input of capital is fixed at k=4.
(4) Show that even if the market of mushroom is perfectly competitive, Primo Fungi is willing to supply mushroom when its input of capital is fixed at k=4.
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