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Midterm 2

During the exam, I wrote these notes on the board:
Corrections to typos

• #1e(C) should read "If…, it will sell…"
• #5 should list these marginal products
(1)
\begin{eqnarray} MP_L & = & \frac{1}{3} K^{1/2}/L^{2/3}\\ MP_K & = & \frac{1}{2} L^{1/3}/K^{1/2} \end{eqnarray}

Clarifications

• #4b asks you to mark the point you find in the box
• #Bonus3: a subsidy of S = $6 is equivalent to a tax of T = -$6
• #Bonus4 does not have a typo & is time-consuming