(adsbygoogle = window.adsbygoogle || []).push({}); 1. The problem statement, all variables and given/known data

Consider the following general form of a constant elasticity of substitution production function:

y = [SL^{p}+ (1 - S)K^{p}]^{1/p}

Assume a firm is trying to minimize the cost of producing any given y. Cost are given by

C = wL + rK

Find the firm's cost minimizing demand function for L. The cost minimizing demand for K is determined simultaneously, so you need both first order conditions. You may assume that nonneggativity constraints on L and K are not binding.

3. The attempt at a solution

Is y = [SL^{p}+ (1 - S)K^{p}]^{1/p}expandable?

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# Mathematical Economics, Minimization

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