Using a Cobb Douglas production function as follows: Q = 4L1/4K 1/4 where p=price of good; w=wage and r=price capital. Derive the input demand functions for; 1 Labour; L = f (w,r, p). 2 Capital; K = f (w,r, p).

Using a Cobb Douglas production function as follows: Q = 4L1/4K 1/4 where p=price of good; w=wage and r=price capital. Derive the input demand functions for; 1 Labour; L = f (w,r, p). 2 Capital; K = f (w,r, p).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 16P

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Question

Using a Cobb Douglas production function as follows: Q = 4L^1/4K ^1/4

where

p=price of good;

w=wage and

r=price capital.

Derive the input demand functions for;

1 Labour; L = f (w,r, p).

2 Capital; K = f (w,r, p).

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