Question
1. Suppose that a firm's production function is given by: Q=L 0.5 K 0.5 . Suppose that the wage firms must pay for their workers
1. Suppose that a firm's production function is given by: Q=L0.5K0.5. Suppose that the wage firms must pay for their workers is $32 per worker and the rental rate they must pay for their capital is $8 per unit.
b. Suppose the firm wants to produce 10 units of output, but it is the SR, so they cannot alter the amount of capital they use. How much labor will they need to produce these 10 units?
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
