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A profit maximizing firm has a production function such that:
Y=K2L2
a) If P=10,rk=2,andWL=3 , what would be its optimum be? How can you show that it is a maximum?
b) How would the answer change if it needs to produce at least 100 units of Y and that it now is a cost minimizing firm?
what are the factors effecting reciprocal demand?
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how do i calculate how much the gorverment should spend if the MPC is 0.8 and 200million is requered to reach full employment ?
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