number of water heaters manufac? Need some help please!
Consider a water heater manufacturing company. The number of water heaters manufactured per day, q,
is a function of the number of workers per day, L, and the number of square feet of sheet metal per day,
S. Specifically, its ( general) CES production function is q = ( L– 2 + S– 2/ 40)– 0.5. The hourly wage rate is
$ 20, and the price per square foot of sheet metal is 50¢.
a. Find the marginal product of labor and capital.
b. Derive and draw the long run expansion path.
c. Derive the long run cost function.
Consider a water heater manufacturing company. The number of water heaters manufactured per day, q,
is a function of the number of workers per day, L, and the number of square feet of sheet metal per day,
S. Specifically, its ( general) CES production function is q = ( L– 2 + S– 2/ 40)– 0.5. The hourly wage rate is
$ 20, and the price per square foot of sheet metal is 50¢.
a. Find the marginal product of labor and capital.
b. Derive and draw the long run expansion path.
c. Derive the long run cost function.