What is the price elasticity of demand at the equilibrium point?

s production function is Q= 2K^(1/4) L^(1/2). The wage rate (w) is $4 the rental rate (r) is Show more A firms production function is Q= 2K^(1/4) L^(1/2). The wage rate (w) is $4 the rental rate (r) is $2 and capital is fixed in the short run at 16. Answer the following questions. (a) What is the short run supply function? (b) What is the Labor requirement relation? Suppose the firms costs are given by C = 2000 + 10q2/100 (c) compute the marginal cost (d) If the number of firms is 60 what is the total industry supply? (e) Given Qd = 6000 20P compute the equilibrium price and quantity in the market. (f) What is the price elasticity of demand at the equilibrium point? (g) Given the price you found above compute q* (the amount produced by one firm) and L* (the amount of labor hired by the individual firm) (h) What is the profit that our individual firm makes? Show less

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