(c) (3%) both labor and capital?

題組內容

4. A cost-minimizing firm has the production function $Q(L, K) = KL + K + L$. Suppose that the price of labor services (L) is 1, and let $r$ denote the price of capital services (K). If the firm aims to produce 20 units of output, for what values of $r$ would the firm use (9%)

(b) Show that if no one provides human right protection, one citizen among those who highly value human right has incentive to unilaterally deviate from providing zero human right protection.Please characterize the above Nash equilibrium. Specifically, how many citizens provide human right protection? Who is(are) the provider(s)? In equilibrium, what is the actual level of human right protection in the society?$^2$ For example, if Citizen 1 provides r1 = 0.1 and Citizen 2 provides r2 = 0.7, and no one else provides positive level of human right protection, the actual level of human right protection in the society is $r = \max\{r1, r2\} = 0.7$.

題組內容

(c) \( (3\%) \) both labor and capital?

相關申論題

相關試卷