Question
estimated production function of a firm is Q = 100K 0.7 L 0.4 . The wage rate is Rs. 50 and rate of interest is
estimated production function of a firm is Q = 100K0.7L0.4. The wage rate is Rs. 50 and rate of interest is Rs. 40.
i. Compute the marginal products of two inputs.
ii. Determine the amount of labor and capital that the firm should use in order to minimize cost of producing 1200 units of output. What is the cost of the firm?
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Foundations of Mathematical Economics
Authors: Michael Carter
1st edition
262531925, 978-0262531924
