Question
Scenario 7.2:The production function for earthquake detectors (Q) is given as follows:Q = 4K1/21/2 L where K is the amount of capital employed and L
Scenario 7.2:The production function for earthquake detectors (Q) is given as follows:Q = 4K1/21/2
L
where K is the amount of capital employed and L is the amount of labor employed. The price of capital, PK, is $18 and the price of labor, PL, is $2.
Refer to Scenario 7.2. Suppose that you receive an order for 60 earthquake detectors. How much labor will you use to minimize the cost of 60 earthquake detectors?
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Economics Principles and Policy
Authors: William Baumol, Alan Blinder
13th edition
1305280595, 1305280598, 9781305465626 , 978-1305280595
