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Suppose in the long run a firm's production function is given by q = L1/2K1/2.Also, suppose the price of Labor is w = 16, and
Suppose in the long run a firm's production function is given by q = L1/2K1/2.Also, suppose the price of Labor is w = 16, and the price of Capital is r = 4.Suppose the firm produces q = 10 units of output.If the firm minimizes its cost of production, the horizontal intercept (L-axis) of the Isocost line will equal ____? and the vertical intercept (K-axis) of the Isocost line will equal____ ?
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