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Suppose the firm's production function is Q=K1/32/3, where the MPK=3K2/3L2/3 and MPL=3L1/32K1/3 a. If the rental rate of capital R=$30 and the wage rate W=$40,
Suppose the firm's production function is Q=K1/32/3, where the MPK=3K2/3L2/3 and MPL=3L1/32K1/3 a. If the rental rate of capital R=$30 and the wage rate W=$40, what is the cost-minimizing capital-to-labor ratio? b. If the rental rate of capital R is $35 and the wage rate W is $70, how many units of labor and capital should the firm use to produce 12 units of output
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Horngrens Financial & Managerial Accounting, The Managerial Chapters
Authors: Tracie Miller Nobles, Brenda Mattison
7th Edition
0136503616, 9780136503613
