Question
Suppose that a firm's production function is given by Q = KL, where Q is quantity of output, K is units of capital, and L
Suppose that a firm's production function is given by Q = KL, where Q is quantity of
output, K is units of capital, and L is units of labour. The price per unit of labour and capital
are $30 and $20, respectively. How many units of labour and capital should the firm use if it
wants to minimize the cost of producing 600 units of output?
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Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
2nd Edition
0324113641, 9780324113648
