Question
The firm owned by Enzo Adadas has a production function which can be described as: F(R,L)= min{10R,13L} where R is rubber and L is labour.
The firm owned by Enzo "Adadas" has a production function which can be described as: F(R,L)= min{10R,13L} where R is rubber and L is labour. The firm produces athletic gear for the feeble.
Enzo has received an order for 165 goods. The cost of Rubber and Labour are Pr=3.00 and Pl=7.25.
a) what is the cost-minimizing the quantity of Labour needed?
b) what is the cost-minimizing quantity of Rubber needed?
c) if the quantity of Rubber was fixed at 94, what would be the cost-minimizing quantity of Labour needed to produce 165 goods? Would Enzo be in a situation to produce such goods?
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