Question
Find a combination of input factors that minimizes the following total cost: TC = 3L2 + 5LK + 7.5K2 - 20L - 21K + 44.2
Find a combination of input factors that minimizes the following total cost:
TC = 3L2 + 5LK + 7.5K2 - 20L - 21K + 44.2
Using the second order conditions prove that this combination corresponds to the minimum. What is the value of the minimum possible total 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
