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A firm produces output according to the production function: Q = F ( K , L ) = 4 K + 8 L . a.
A firm produces output according to the production function:
Q = F(K, L) = 4K + 8L.
a. How much output is produced when K = 2 and L = 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 32 units of output?
Capital:
Labor:
c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?
Capital:
Labor:
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