2/3-1/3Q1. Consider the production function Q = 9LK"a. What is the level of output when L 1000 and K = 216b. Use marginal analysis to estimate Q(1000,216) and Q(1000,217.5)c. Compute.these two values of Q to three decimal places and compare these valueswith your estimate in (b) above.d. The demand funetjon Q = K,P,""P;"1" is ealled a constant clasficity demandfunction. Compute the three clasticities (Own price, Cross Price and Income) andshow that they are all constant.%3Da12,b1

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2/3 1/3 Q1. Consider the production function Q = 9LKA a. What is the level of output when L 1000 and K = 216 b. Use marginal analysis to estimate Q(1000,216) and Q(1000,217.5) c. Compute.these two values of Q to three decimal places and compare these va

2/3 1/3 Q1. Consider the production function Q = 9LKA a. What is the level of output when L 1000 and K = 216 b. Use marginal analysis to estimate Q(1000,216) and Q(1000,217.5) c. Compute.these two values of Q to three decimal places and compare these va

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

2/3-
1/3
Q1. Consider the production function Q = 9LK"
a. What is the level of output when L 1000 and K = 216
b. Use marginal analysis to estimate Q(1000,216) and Q(1000,217.5)
c. Compute.these two values of Q to three decimal places and compare these values
with your estimate in (b) above.
d. The demand funetjon Q = K,P,""P;"1" is ealled a constant clasficity demand
function. Compute the three clasticities (Own price, Cross Price and Income) and
show that they are all constant.
%3D
a12,b1

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