Question
1.A firms production function is Q = 100L^.6 K^.4 The firms input prices are PL = $30 and PK = $40. The firm wishes to
1.A firm’s production function is Q = 100L^.6 K^.4 The firm’s input prices are PL = $30 and PK = $40. The firm wishes to produce 2,000 units of output and minimize the cost of production. How much labor (L) and capital (K) should the firm employ? A.L=20.0, K=12.5. B.L=22.4, K=13.4. C.L=25.0, K=15.0. D.L=26.39, K=132. E.L=32.5, K = 26.2.
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
