Answer-Suppose that a firm has the cost function for a plant as given below C..148645

Q: Suppose that a firm has the cost function for a plant as given below C(w, r, q) = 0.5q(w+r) where q

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Question

Suppose that a firm has the cost function for a plant as given below

C(w, r, q) = 0.5q(w+r)

where q is output, w is the cost of labour l and r is the cost of capital k.

Find out the production function for the firm

A Q = 0.5L0.5K0.5

B Q = 2L+2K

C Q = min(2L,2K)

D Q = L + 0.5K

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Question

Suppose that a firm has the cost function for a plant as given below C(w, r, q) = 0.5q(w+r) where q is output, w is the cost of labour l and r is the cost of capital k. Find out the production function for the firm

Solution

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Suppose that a firm has the cost function for a plant as given below

C(w, r, q) = 0.5q(w+r)

where q is output, w is the cost of labour l and r is the cost of capital k.

Find out the production function for the firm