Question
A waffle manufacturer named John is facing the following product function. = (, ) = 100 0.8 0.2 The price for labor is USD 500
A waffle manufacturer named John is facing the following product function.
= (, ) = 1000.80.2
The price for labor is USD 500 per unit.
The price for capital is USD 125 per unit.
John wants to produce 400 waffles at the lowest possible cost. How much labor and capital does he need? What will be the cost?
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
4th edition
1305259335, 978-1305259331
