Question
A firms production function is Q = 100L .6 K .4 . The firms input prices are PL = $30 and PK = $40. The
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=13.2. | |
| E. | L=32.5, K = 26.2. |
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Mathematics for Economics and Business
Authors: Ian Jacques
9th edition
129219166X, 9781292191706 , 978-1292191669
