Business, 08.11.2019 03:31 pandagirl710
Consider a firm with production function f(l, k)=l1/7k6/7 (cost minimization for this firm is characterized by the tangency rule). assume also that the price of capital r=3 and the price of labor w=2. suppose that a worker strike constrains the firm to a level of labor x units lower than its original level, where x is a small number. what is a good approximation of the amount of capital that the firm should increase in order to maintain its original level of production?
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Consider a firm with production function f(l, k)=l1/7k6/7 (cost minimization for this firm is charac...
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