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Assume a garment factory has the production function Q = JFK. The factory initially,r faces input prices w = 51 and r = 52 and
Assume a garment factory has the production function Q = JFK. The factory initially,r faces input prices w = 51 and r = 52 and is required to produce Q = 2000 units. Later the price of labour w goes up to $41 Find: a) the initial optimal input bundle b) the new optimal input bundle following the increase in the wage rate? (Hint: You can round o' your answers to the nearest whole number)
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