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Suppose we are looking at a cost minimizing firm facing the following production function, factor prices and target output: Q=K^0.2 L^0.6; w=20; r=10; Q_0=1000, which
Suppose we are looking at a cost minimizing firm facing the following production function, factor prices and target output: Q=K^0.2 L^0.6; w=20; r=10; Q_0=1000, which of the following is/are true? (round-off your estimates to two decimal places at every stage of your computation)
a.) The firm is able to forego 3 units of capital in exchange for one unit of labor and still be able to produce the same level of output.
b) L* is 5,101.26
c) K* is 3,200.15
d) all of the above
e) none of the above
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