Question
Suppose that a firm's production function is q = 10L^(3/2)K^(1/2). The cost of a unit of labor is $20 and the cost of a unit
Suppose that a firm's production function is q = 10L^(3/2)K^(1/2). The cost of a unit of labor is $20 and the cost of a unit of capital is $80. Find the optimal level of capital and labor required to produce the 100 units of output in the long run. Illustrate this graphically using an isoquant and isocost lines. Find the firm's total cost.
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
