Question
Consider the following productionfunction: q=100L^0.8K^0.4. Currently the wage rate(w) is $30.00 and the price of capital(r) is $10.00. If the firm is using 100 units
Consider the following productionfunction:
q=100L^0.8K^0.4.
Currently the wage rate(w) is $30.00 and the price of capital(r) is $10.00. If the firm is using 100 units of capital inproduction, how much labor should be employed to minimize costs.
Labor input= _______ units. (Enter a numeric response using a real number rounded to two decimalplaces)
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The Commanding Heights The Battle For The World Economy
Authors: Daniel Yergin, Joseph Stanislaw
1st Edition
068483569X, 9780684835693
