A firm has production function and faces , . The firm's marginal cost is equal to ________ (in integer).
1 markMicroeconomicsCosts of productionCost minimisation and long-run input choiceModerateabout 2 min
IIT JAM 2023 Question 48: Costs of production
Answer and worked solution
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Plain-text version
A firm has production function y=K⁰·⁵L⁰·⁵ and faces w=4, r=4. The firm's marginal cost is equal to (in integer).
Also written as: A firm has production function y=K^(0.5)L^(0.5) and faces w=4, r=4. The firm's marginal cost is equal to (in integer).
Costs of production has come up 83 times in 7 exams since 2006.
What this question tests
This question is on Cost minimisation and long-run input choice, part of Costs of production in Microeconomics.
Choosing inputs to produce a given output at least cost, including across several plants.
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