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Rosalie's Ridgets uses labor (L) and capital (K) to produce ridgets (duh). Its production function is f = K^2/3L^1/3, where f = number of ridgets
Rosalie's Ridgets uses labor (L) and capital (K) to produce ridgets (duh). Its production function is f = K^2/3L^1/3, where f = number of ridgets produced. Labor and capital both cost 4 per unit to hire. If this firm wants to make 1000 ridgets, then it will spend about 9,547 to do so. Show that this firm will spend 19,094 (or twice 9,547) to produce 2000 ridgets.*
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