Suppose that firms in the zipper industry have the production technology: F(K,L)=4K^(3/4) * L^(1/4) You know that the cost of labor is 27 and the price of zippers is 8. If the market is in a long-run equilibrium and zippers are being produced, what is the price of capital?
Suppose that firms in the zipper industry have the production technology: F(K,L)=4K^(3/4) * L^(1/4) You know that the cost of labor is 27 and the price of zippers is 8. If the market is in a long-run equilibrium and zippers are being produced, what is the price of capital?
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter21: Costs And The Supply Of Goods
Section: Chapter Questions
Problem 13CQ
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Question
Suppose that firms in the zipper industry have the production technology:
F(K,L)=4K^(3/4) * L^(1/4)
You know that the cost of labor is 27 and the price of zippers is 8. If the market is in a long-run
equilibrium and zippers are being produced, what is the price of capital?
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