Answer to Question #119059 in Microeconomics for Anshika Bakrewal

Question

suppose the production function of a firm is q = f(l, k) = al k , where α + β < 1. what property does the cost function of the firm exhibit? ___

Answer 1

The firm exhibits the property of marginal cost since the increase in cost that accompanies a unit increase in output; the partial derivative of the cost function with respect to output.