Question
Suppose that the production function for your firm is given by: F(L,K) = L ^(1/4) K^(1/2) . w=2 and r=4. In the long-run, how many
Suppose that the production function for your firm is given by: F(L,K) = L ^(1/4) K^(1/2) . w=2 and r=4.
In the long-run, how many workers and capital should you hire in order to produce Q units of output?
a. L*=Q, K*=Q
b. L*= Q^3 , K*= Q^3
c. L*= Q^3/4, K*= Q^3/4
d. L*= Q^4/3, K*= Q^4/3
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
