Question
Suppose the production function is given by Q = 4K1/2L1/2, and capital is fixed at 16. If the firm can sell its output at $20
Suppose the production function is given by Q = 4K1/2L1/2, and capital is fixed at 16. If the firm can sell its output at $20 per unit and hire labor at $30 per unit, how many labor should the firm hire to maximize profit?
144
36
81
None of the answers are correct.
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International Economics
Authors: Dennis Appleyard, Alfred Field
8th Edition
978-0078021671, 0078021677
