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Title: A U.S. firm currently produces 200 units of output according to the production function q = L0.5K0.5 ... Post by: Lola617 on Nov 23, 2018 A U.S. firm currently produces 200 units of output according to the production function q = L0.5K0.5 and faces input prices equal to wU.S. = rU.S = $11. Should the U.S. firm move their company abroad where they will face input prices equal to wabroad = $6.50 and rabroad = $15.00?
A) Yes, because the total costs will fall from $3,859 to $2,810. B) No, because the total costs will increase from $2,810 to $3,859. C) No, because the firm has decreasing returns to scale. D) Not enough information is given to answer this problem. Title: A U.S. firm currently produces 200 units of output according to the production function q = L0.5K0.5 ... Post by: brady_ferguson6 on Nov 23, 2018 Content hidden
Title: BFSF: A U.S. firm currently produces 200 units of output according to the production function q = L0.5K0.5 ... Post by: Ruowen Wang on Jun 15, 2023 Help! The answer is missing an explanation...
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