Question
1....Suppose that the production function of the firm is: Q = 100L 1/2.K 1/2 K= 100, P = $1, w = $30 and r =
1....Suppose that the production function of the firm is: Q = 100L 1/2.K 1/2
K= 100, P = $1, w = $30 and r = $40. Determine the quantity of labor that the firm should hire in order to maximize the profits. What is the maximum profit of this firm?
2.... Solve the above problem for w = $50.
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann
1st Edition
0324359810, 9780324359817
