microeconomics

Question 7. Consider the following Leontief production function which uses capital $(K)$ and labor $(L)$ as inputs: $F (K, L) = min {? K, ? L} .$ a. Plot the isoquant curves (the collection of input pairs that produce the same quantity) for this production function. b. Derive the cost function $c (w, r, q)$ , as well as the conditional factor demand function $z (w, r, q)$ for given input prices $w$ (wage for labor) $r$ (rent for capital), and the quantity $q$ .

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microeconomics

Question 7. Consider the following Leontief production function which uses capital

(K)

and labor

(L)

as inputs:

F (K, L) = min {? K, ? L} .

a. Plot the isoquant curves (the collection of input pairs that produce the same quantity) for this production function. b. Derive the cost function

c (w, r, q)

, as well as the conditional factor demand function

z (w, r, q)

for given input prices

w

(wage for labor)

r

(rent for capital), and the quantity

q

.

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