Question
Suppose you are a manager of a firm which has the following production function: Q =9K1/3L2/3 where Q is the number of units of produced,
Suppose you are a manager of a firm which has the following production function:
Q =9K1/3L2/3
whereQis the number of units of produced,Krepresents the amount of capital equipment andLis labor.It is your job to determine how many units of labor to hire.If your capital is fixed at 27 units, your product sells in a competitive market for $10 a unit, and you can hire a unit of labor for $18, how many units of labor should you hire?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
