Question

If F(x) = f(x)g(x), where f andg have derivatives of all orders, show that F'' = f''g + 2f'g' + fg''

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.