Question
Q = 6L - 0.1L 2 + 4 K - 0.2 K 2 The wage rate is $30, the cost of capital is $40, and
- Q = 6L - 0.1L2 + 4 K - 0.2 K2
The wage rate is $30, the cost of capital is $40, and output sells for $50.
- In the short run, capital is fixed at 5 units. How much labor do you recommend?
In the long run, the firm decides to increase its inputs by 10% as compared to its inputs in part a. What do you conclude about returns to scale
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International Business
Authors: John Daniels, Lee Radebaugh, Daniel Sullivan
15th edition
133457230, 978-0133457230
