Question
Suppose that firms face the following production function: Q = L^1/3 K^2/3. Suppose also that price of labor (L)=w=1 and price of capital (K)=r=16.If the
Suppose that firms face the following production function: Q = L^1/3 K^2/3. Suppose also that price of labor (L)=w=1 and price of capital (K)=r=16.If the firm wants to produce 120 units of output, what is the optimum amount of labor, capital and associated cost respectively?
240, 30, 720
120, 15, 360
480, 60, 1440
720, 90, 2160
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Business Its Legal Ethical and Global Environment
Authors: Marianne M. Jennings
11th edition
1337103578, 978-1337514392, 133751439X, 978-0357690130, 978-1337103572
