Question
[4 points] A plant's production function is Q=LK , where MPL=K andMPK=L . The price of Labour is $4 and t he price of capital
[4 points] A plant's production function is Q=LK , where
MPL=K andMPK=L
. The price of Labour is $4 and t he price of capital is $2.
If the firm has its capital fixed at K=10, find the amount of labour it must hire to produce 50 units.
If the fact that K is fixed at 10, more costly for the firm? By how much?
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Research Methods Design And Analysis
Authors: Larry Christensen
13th Edition
0205961258, 978-0205961252
