A firm produces output according to a production function: Q = F ( K,L ) = min
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Question:
A firm produces output according to a production function:
Q=F(K,L) = min {4K,8L}.
a. How much output is produced whenK= 2 andL= 3?
unit(s)
b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 8 units of output?
Expert Answer:
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