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A firm wants to minimize the cost of producing 2,800 units of output per week. It has hired a production engineer to identify alternative production

A firm wants to minimize the cost of producing 2,800 units of output per week. It has hired a production engineer to identify alternative production technologies that will accomplish this goal. The production technologies use the different combinations of capital (K) and labor (L) that are listed below.

K

200

180

160

140

120

100

80

60

40

20

16

L

16

18

22

28

36

46

60

80

110

160

180

Assume that the rental price of capital is $10 and the wage rate of labor is $8. Determine the minimum cost of producing 2,800 units of output.

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