Question
A company that produces software has the following production functionQ=L 3 K 3 , whereLis labour andKis capital. The price of labour is $6 per
A company that produces software has the following production functionQ=L3K3, whereLis labour andKis capital. The price of labour is $6 per hour and the price of capital is $3 per unit.
Does this production function exhibit constant, decreasing or increasing returns to scale?
What is the optimal combination of inputs that this company would use if it wants to produce 2,400 units of software?
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Probability And Statistics
Authors: Morris H. DeGroot, Mark J. Schervish
4th Edition
9579701075, 321500466, 978-0176861117, 176861114, 978-0134995472, 978-0321500465
