Compare the short-run and long-run equilibria. Compare and comment on
prices, quantity, costs (marginal and average) of production, and welfare
(producer and consumer surplus)
4
U (JC, Y ) = 10JC − JC2
2 + Y M UJC = 10 − JC M UY = 1
JC = 4K^1/2 + 2L^1/2 M PK = 2
K^1/2 M PL =1/L^1/2
r = w = 1 f
MC = JC/10
