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( 6 points ) Suppose that a firm produces output according to the following production function. Q=L^0.6K^0.4 Assume that this company is currently using 4
- (6 points) Suppose that a firm produces output according to the following production function.
Q=L^0.6K^0.4
- Assume that this company is currently using 4 units of capital and the desired output level is 10 units. Find the technical efficient number of workers. Make sure to show all your work.
- Now suppose that this company is using 6 units of capital and 10 workers to produce 7 units. Does this labor-capital combination represent a technical efficient input mix? Make sure to show all your work and to carefully explain.
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