Question
Suppose Jim's electric bike shop has the following production function: q = 15L 0.25 K. Bob has $10000 to spend on the production of electric
Suppose Jim's electric bike shop has the following production function: q = 15L0.25 K. Bob has $10000 to spend on the production of electric bikes. He pays his workers a wage of $10 and his capital costs are $50. If Jim wants to build as many bikes as he can with the $10000, how many employees and capital should Jim employ? How many e-bikes can Jim produce?
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Principles Of Economics
Authors: Robert H. Frank, Ben Bernanke Professor, Kate Antonovics, Ori Heffetz
6th Edition
0078021855, 9780078021855
