Question

Evaluate the limit, if it exists. (If an answer does not exist, enter DNE.) lim h → 0 (−7 + h)2 − 49 h

Answer 1

1. Suppose the hourly wage is $10 and the price of each units of capital is $25. The price of output is constant at $50 per unit. The production function is: q = L0.5 K0.5

Suppose that the current capital stock is fixed at 1600 units.