Anonymous
Anonymous asked in Science & MathematicsMathematics · 1 decade ago

need answers now!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!?

A firm uses capital K, Labour L, and land T to produce Q units of a commodity, where Q= K^2/3 +L^1/2 +T^1/3.

a) Suppose that the firm is paid p for each unit it produces and that the proces it pays per unit of K, L, T are r,w and q respectively. Find the values pf K,L,T(as functions of the 4 prices) that maximize the firm's profits,

(symbol for pie)=p(K^2/3 +L^1/2 +T^1/3)- rK-wL-qT

***max exists and all constants are positive

b) Let Q* denote the optimal number of units produced and K* the optimal captial stock. Show that (partial derivative)Q*/(partial derivative)r = - (partial derivative)K*/(partial derivative)p

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  • 1 decade ago
    Favorite Answer

    Exclamation points don't give faster answers, really!!!!!!!!!!!!!!!!!

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  • Anonymous
    1 decade ago

    and the answer is.......................

    12

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