Question
Suppose the hourly wage is Kshs.10 and the price of each unit of capital is Kshs.25. the price of output is constant at Kshs50 per
Suppose the hourly wage is Kshs.10 and the price of each unit of capital is Kshs.25. the price of output is constant at Kshs50 per unit. The firm's production function is given as f(L,K)=L^1/2K^1/2. If the current capital stock is fixed at 1600 units, how much labour should the firm hire in the short run?
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Microeconomics
Authors: Christopher T.S. Ragan, Richard G Lipsey
14th canadian Edition
321866347, 978-0321866349
