Quiz 5

Q:  Assuming F(L,K)=L^1/2K^1/3, w=3 and v=2, find TC and MC.

A:  Setting the RTS = w/v we have 3K/2L=3/2 or K=L.  Therefore, q=L^1/2L^1/3=L^5/6.  So L=q^6/5 and TC= wL+vK=3*q^6/5 +2*q^6/5  = 5q^6/5.  MC=dTC/dq=6q^1/5.