Question
A firm has a production function of Q = KL + L , where MP L = K + 1 and MP K = L
A firm has a production function ofQ=KL+L, whereMPL=K+ 1 andMPK=L. The wage rate (W) is $100 per worker and the rental (R) is $100 per unit of capital. The firm is producing 100 units of output. In the long run, what is the equation for the firm's isocost line?
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Land Economics Research
Authors: Joseph Ackerman, Marion Clawson, Marshall Harris
1st Edition
1317340426, 9781317340423
