Let the production function be Q = K2/5 3/51

Subject:EconomicsPrice: Bought3

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Let the production function be Q = K2/5 3/51. Derive the contingent demand functions for K and L

L assume that both factors are variable.

2. Substitute the contingent demand functions in the total cost that you minimized in part a) to obtain the total cost function.

3. Find the amount of K and L necessary to produce Q = 360 when v = 4 and w = 2.

4. Find the average and marginal cost functions