Question
A firm produces output according to the production function: Q= 4k+8L a. If the wage rate is $60 and rental rate is $20, what is
A firm produces output according to the production function:
Q= 4k+8L
a. If the wage rate is $60 and rental rate is $20, what is the cost-minimizing output mix when you wish to produce 32 units of output?
b. How does your optimal input mix change if wage rate decreases to $20 and rental rate remains $20?
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Land Economics Research
Authors: Joseph Ackerman, Marion Clawson, Marshall Harris
1st Edition
1317340426, 9781317340423
