Derive the cost function for the two-input constant-returns, Ask an Expert

Economics

Derive the cost function for the two-input, constant-returns, Cobb-Douglas technology. Fix one input and derive the short-run cost function. Show that long-run average and long-run marginal cost are constant and equal. Show that for every level of the fixed input, short-run average cost and long-run average cost are equal at the minimum level of short-run average cost. Illustrate your results in the cost-output plane.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91951474

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